But it costs a lot more than normal search engines. So… will it ever be profitable?
swatkat7•5mo ago
The cost of inference is trending down, and will continue to. The models are also getting more efficient -- GPT 5 is famously cheaper to serve compared to their previous models. There are improvements at the computer layer too.
Very soon, the cost of inference will find parity with that of search and/or search ads will be more effective and hence be charged more.
It will end up working out, I think.
dotcoma•5mo ago
It may end up working out for Google.
But I doubt for the other players, the ones that started this AI war and who have a much much smaller audiences than Google.
swatkat7•5mo ago
You're bang on! Companies like Google and Meta with ads infra already will gain the most market share. The rest will either consolidate or get acquired, or worse shut shop :(
dotcoma•5mo ago
swatkat7•5mo ago
Very soon, the cost of inference will find parity with that of search and/or search ads will be more effective and hence be charged more.
It will end up working out, I think.
dotcoma•5mo ago
But I doubt for the other players, the ones that started this AI war and who have a much much smaller audiences than Google.
swatkat7•5mo ago