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AI Startups Are Suddenly In Huge Trouble [Yahoo! Finance]
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As the New York Times reports , AI startups are having major issues as they continue trying to compete with the big boys while experiencing the harsh reality of their enormous costs From the makers of the image generator Stable Diffusion to Anthropoic, which was founded by OpenAI exiles, startups are staring down the barrel of their expenses — which in addition to the regular cost of running a tech startup also include the massively expensive compute power required to run large AI models. "You can already see the writing on the wall," Ali Ghodsi, the CEO of the data storage and analysis company Databricks, told the NYT . "It doesn't matter how cool it is what you do — does it have business viability?" Toil and Trouble Perhaps the biggest issue, as the report suggests, is that investors who spent big on AI hype over the past few years are now seeking returns that have yet to materialize. As the investment tracker PitchBook told the newspaper, there has been $330 billion pour
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