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Davriellelouna@lemmy.world to Technology@lemmy.worldEnglish ·
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21 hours ago

Techcrunch reports that AI coding tools have "very negative" gross margins. In other words, they are losing money on every user.

techcrunch.com

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Techcrunch reports that AI coding tools have "very negative" gross margins. In other words, they are losing money on every user.

techcrunch.com

Davriellelouna@lemmy.world to Technology@lemmy.worldEnglish ·
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21 hours ago
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Exclusive: The high costs and thin margins threatening AI coding startups
techcrunch.com
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Coding assistant startups are highly unprofitable, says a source familiar with Windsurf financials.
  • jaykrown@lemmy.world
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    17 hours ago

    I doubt it, LLMs have already become significantly more efficient and powerful in just the last couple months.

    In a year or two we will be able to run something like Gemini 2.5 Pro on a gaming PC which right now requires a server farm.

    • AmbiguousProps@lemmy.today
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      11 hours ago

      Current gen models got less accurate and hallucinated at a higher rate compared to the last ones, from experience and from openai. I think it’s either because they’re trying to see how far they can squeeze the models, or because it’s starting to eat its own slop found while crawling.

      https://cdn.openai.com/pdf/2221c875-02dc-4789-800b-e7758f3722c1/o3-and-o4-mini-system-card.pdf

      • kebab@endlesstalk.org
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        1 hour ago

        Those are previous gen models, here are the current gen models: https://cdn.openai.com/pdf/8124a3ce-ab78-4f06-96eb-49ea29ffb52f/gpt5-system-card-aug7.pdf#page10

      • jaykrown@lemmy.world
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        7 hours ago

        That’s one example, but what about other models? What you just did is called cherry picking, or selective evidence.

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