WP "ChatGPT and AI, Concerns of Being Just a Bubble"

"Massive Costs Required, Business Model Unclear" Criticized

The Washington Post (WP) reported on the 6th (local time) that generative artificial intelligence (AI) like ChatGPT, which is gaining global popularity, may remain just a 'bubble' due to the lack of a proper business model.

In Silicon Valley, tech companies such as Google and Microsoft are competitively developing generative AI, and AI startups are attracting billions of dollars in venture capital funding. Similar to past bubbles related to the dot-com era, autonomous vehicles, and cryptocurrencies, startups are now fervently seeking investment by associating themselves with AI technology.

However, WP pointed out that the revenue model for generative AI remains unclear. Building and operating generative AI systems require enormous costs for semiconductors, data servers, and skilled engineers. Compared to technologies related to social media or e-commerce, AI demands significantly higher expenses, making success difficult without a proper business model.

WP also disputed the investment bank UBS’s report that ChatGPT reached 100 million monthly users within three months of its launch, stating that this figure only referred to website visitors and was not an official monthly active user (MAU) count. Andrew Harrison, CEO of venture capital firm Section32, remarked, “AI is just expensive software,” adding, “If it doesn’t perform at least ten times better than now, it remains low-margin software.”

U.S. CNN also pointed out that semiconductor shortages could become an obstacle to generative AI development. It cited Microsoft’s recent earnings report, where the company informed investors that a shortage of graphics processing units (GPUs) could potentially pose a risk to the AI sector. Raj Joshi, who works in Moody’s investment services, said, “As AI demand grows, there is a ‘massive suction sound’ (drawing in semiconductors),” and added, “I believe the semiconductor industry is not prepared for this surge in demand.”

[Image source=Reuters Yonhap News]

This content was produced with the assistance of AI translation services.