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.
“YOU lower YOUR profits so I can increase MY profits!”
You assume AI companies are making a profit. None of them are.
It’s very common in the tech industry for expenses to exceed revenues in the first years. Look at Amazon way back. That’s only one of the most famous examples. The difference between revenues and expenses is what I call a profit, regardless of whether that number is positive or negative.
Edit: Hey downvoters: I’m not the one who built Amazon nor accounting. Sorry to be the one to break it you but you can pour your bitterness elsewhere: https://en.wikipedia.org/wiki/Profit_(accounting)