cross-posted from: https://discuss.online/post/42512590

Speaking during an interview on CNBC’s “Squawk on the Street” segment earlier this week, CEO of cybersecurity giant Palo Alto Networks Nikesh Arora implored the tech industry to lower the cost of AI.

During the segment, the chief executive argued that the cost to use large language models (LLMs) has to drop by 20 percent by 2027 — and 90 percent by 2028 — for the tech to be useful to enterprises.

“We need to see the pricing for AI come down,” Arora said.

  • reallykindasorta@slrpnk.net
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    2 days ago

    Zooming out, Arora’s pleas for cheaper AI are instructive. For your average CEO, the ostensible value of any AI tool is in its ability to automate human workers and either slash payroll costs or keep them low — hence the trillions of dollars capitalists have poured into the industry.

    I think companies should understand by now that adding a machine to replace workers usually reduces profit since the exploitation of human labour is where the profit comes from. The machine costs the same for every company (and produces the same efficiencies) and every company must buy the machine to match competitor productivity. Sort of an inflation effect where the threshold goes up for everyone.

    The people making money are the ones selling the machines, and they’ll do their best to be sole manufacturers and maintainers just like John Deer.