A.I. Start-Ups Face a Rough Financial Reality Check
Briefly

The A.I. revolution's financial challenges are evident, with struggling start-ups like Inflection AI and Stability AI facing closures, layoffs, and executive changes due to unsustainable expenses versus profits.
Generative A.I. start-ups are realizing the monumental cost of competing with tech giants like Google and struggling to bridge the gap between expenses and future profits, requiring billions that may still not suffice.
Building and maintaining generative A.I. models incurs billions in costs due to expensive specialized chips, high operational expenses, and the vastly greater expense of each query compared to traditional searches.
Read at www.nytimes.com
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