alt Hacker NewsOkay, but what if you're not Microsofts size and don't have and R&D budget large enough to fund development of your own models and tools?
This is a warning to any company, not building their own AI, that AI assisted development could become really expensive really fast and most likely won't pay off. What Microsoft is suggesting is that the current price is to high, but it's still not high enough for e.g. Anthropic to be profitable, or AI coding tools are only as good as the developers using them. So you can't meaningfully do layoffs by replacing the developers with AIs, because the cost is to high.
How does Microsoft plan to fix CoPilot, so that the cost will be so much lower than Claude, that budget overruns won't be a problem for their own customer?
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Giving your workforce Claude is like giving everyone in the USPS a Ferrari.
There may be a spot of “good enough to pay for and make a profit” that exists.
I expect in the next year or so, we'll stop seeing headlines like "Anthropic buys $15b of compute from SpaceX" and we'll start seeing headlines like "Uber's AI department licenses GPT 6.2 as the foundation for their internal model," or something like that.
Smaller companies will have departments that distill larger models into something more specifically manageable and useful for them. At least, that's my personal prediction :)