Speaking during an interview on CNBC’s “Squawk on the Street” segment earlier this week, CEO of cybersecurity giant Palo Alto Networks Nikesh Arora implored the tech industry to lower the cost of AI.

During the segment, the chief executive argued that the cost to use large language models (LLMs) has to drop by 20 percent by 2027 — and 90 percent by 2028 — for the tech to be useful to enterprises.

“We need to see the pricing for AI come down,” Arora said.

  • one_old_coder@piefed.social
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    3 months ago

    Not even once did he think whether it was useful or not. We really need to replace CEOs, managers, and the whole C-suite with LLMs, that would be useful for once! And at $20/month, it’s a bargain and you can redistribute the money to people who really work.

    • RustyNova@lemmy.world
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      3 months ago

      Nah. Ai also trained on ceo actions, so I’d say it would result in eviler mecha ceo driving the ship drunker than usual

      • CapuccinoCoretto@lemmy.world
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        3 months ago

        We don’t train then on ceo actions. We train them to run a company for the betterment of society, it’s people, the employees and its survival.

        • zbyte64
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          3 months ago

          You need actual examples of a company working for the betterment of society to train the AI though.

            • zbyte64
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              3 months ago

              If they were actually firing bad employees then they would start with the executives. The whole AI thing is largely a reflection of what executives think work is, where you just need to prompt your employees better to get better results

              • trolololol@lemmy.world
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                3 months ago

                I always think that’s the reason of AI overconfidence.

                Look at it this way: if AI was my boss, got a lots of things kinda wrong and some things totally wrong, I’d just ignore the bs and do my job the way things actually work.

                So from employee perspective, CEOs are easy to replace because they just assign work to be done. Because that’s the easy part and if you give wrong instructions, someone with actual intelligence and actual hands would eventually do it right.

                Flip the coin, and get someone that knows their stuff and let them assign work to incompetent people and or AI, and what do you get? Slop.

            • wonderingwanderer@sopuli.xyz
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              3 months ago

              Not really, we’re talking about running companies for the betterment of society, which CEOs don’t do, so it’s not implied that they would be capable of the thing that I mentioned would be required to do that

              Also, they do make decisions. Almost exclusively bad decisions, because they’re out of touch with the real world and the lived experiences of ordinary people, and they don’t care about right and wrong, and their only concern is “line go up.” But even bad decisions are still decisions.

              LLMs literally cannot make decisions, good or bad, because that’s fundamentally not a capability it possesses. If you ask it to make a decision it will hallucinate something based on any irrelevant details it finds in its context window. It can’t perform cognitive reasoning, or weigh pros and cons, or consider secondary and tertiary effects.

    • ChicoSuave@lemmy.world
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      3 months ago

      He sort of did with executive double speak: he said two things by implying the cost wasn’t worth it. To justify the poor quality the price has to drop by 90%. That’s shareholder speak for “this is not profitable and not worth the debt exposure”.

  • grte@lemmy.ca
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    3 months ago

    Just drop the price by 90% in a year and a half while already hemorrhaging money, no biggie. haha.

    If these stupid fucks didn’t have the ability to affect my life this would be so, so funny. It’s still pretty funny even so.

  • gravitas_deficiency@sh.itjust.works
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    3 months ago

    This is so deeply, fundamentally hilarious to me.

    • LLM corp CEOs are getting extremely uncomfortable at the manifestly nonsensical economics of the current “AI” CapEx and recurring infra costs
    • investors in LLM corps (including the absolute fucking cabbages at other tech corps who decided circular financing was a great idea) are getting sketched out at the likely impact on their own finances, as well as the costs of LLM bullshit in general, and its likely trajectory
    • other CEOs are now seeing the very obvious cost issues as well, and are begging to return to the previous (deeply unsustainable) pricing models

    I am genuinely convinced we’re gonna see the bubble pop before the end of the year.

    • iocase@lemmy.zip
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      3 months ago

      Don’t forget anyone with 3 functioning brain cells knows you don’t replace workers with AI, and even using it as a productivity tool can cause workers to offload their jobs onto their coworkers with AI by outsourcing comprehension and cognition with workslop.

      The “strong” tasks for AI are so limited in scope I don’t think it’s as world shaking as people think it is. Until they figure out the hallucination thing its just an intern who’s a pathological liar. In fact I think it’s worse since the intern at least knows what the truth is when they try to hide it with a lie. LLMs have no concept of truth or falsehood they just create a confident most-likely answer with no idea of what’s true or false.

      • ZDL@lazysoci.al
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        3 months ago

        They can’t “figure out” the hallucination thing because literally everything that comes out of an LLMbecile is hallucination. It’s just that sometimes (and not as many times as people seem to think!) the hallucination happens to match something in reality.

        So why do so many people believe that LLMs “know” things and aren’t constantly hallucinating? We’re getting our cognition hacked.

        See, we have no way to directly detect intelligence in other beings. What we have are proxies that have, over millions of years of evolution, proved “good enough” a substitute for the actual measurement to be usable as that measurement. And one of the biggest pieces of proxied intellectual detection we have is … fluency. (You know all those bigoted “Polish jokes” or, from my childhood, “Ukrainian jokes”, or such over the years? Yep. Entire ethnic groups were painted with a broad brush as being “stupid” because they couldn’t speak English well. Thank you proxied intellect measurement!)

        LLMs are something unprecedented in the entire history of life on this planet: fluency paired with zero intellect. But we’ve evolved to use fluency as a very strong proxy measure of intellect. LLMs, with their confident wording and their almost supernatural fluency fool us into thinking they’re, well, thinking. And because we assume that they’re smart, we overlook their errors—often helping them along and prompting them down the right path when they hallucinate incorrectly, but close to correct—and when we give them the answer and they state it with fluency and confidence, we’re amazed at how smart they are!

        But the truth is that they cannot ever figure out the hallucination thing. It would take a completely different technology from LLMs to solve that problem. LLMs are a dead end for genuine machine intellect.

        • Tollana1234567@lemmy.today
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          3 months ago

          oh yea only if the hallucination sources from veribel fact sources, like legitimate research papers, official medical/govt,etc sites. but most of the time its REDDIT, blogs, or other forums.

          • ZDL@lazysoci.al
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            3 months ago

            No. You are making a mistake. Here are two sentences.

            The orange tree is a tall plant that produces sweet fruits. The giraffe is a tall animal that eats sweet fruits.

            These are both true statements. But using statistical generation I could easily, from these, generate “The orange tree is a tall animal that eats sweet fruits.”

            EVERYTHING that comes from an LLM, no matter how it is trained, is hallucinatory. NO EXCEPTIONS. The more often that the statistics match reality, the more likely it is that it will match reality, but even if 100% of the input is factual there is always a path in the stochastic generation that will yield (highly fluent) garbage.

            Also, remember that Piltdown Man was written about as a real thing in the scientific journal Nature…

      • HerbGrower@slrpnk.net
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        3 months ago

        by outsourcing comprehension and cognition with workslop.

        Omg I have seen this so much in my last job. Everyone else blindly trusting the LLM while I was calling it a fucking moron because it was wrong most of the time and when it was right it still couldn’t solve the actual problem. Even common issues it frequently fucked up with.

        • iocase@lemmy.zip
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          The really insidious way to abuse it is to summarise a report youre supposed to read into an email you send to your colleague. Now they are the ones that have to do all of the reading to make sure it’s right. Same with making and interpreting emails. The thorough person who actually verifies everything is doing outsourced comprehension and cognition from a colleague who didn’t do that to appear more productive.

      • HobbitFoot @thelemmy.club
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        3 months ago

        But it was a great way for tech to justify laying off staff as a cover for killing product lines not making money. Then non-tech companies bought the bullshit.

    • ZDL@lazysoci.al
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      3 months ago

      I’m predicting for July or August of 2027 myself. Never underestimate the ability of the market to be delusional.

    • Tollana1234567@lemmy.today
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      3 months ago

      also laying off so many tech workers since 2023, they probably see alot of loss productivity and innovation, and profit in other areas, also has a unitended by predictable side effect of eliminating jobs for fresh graduates and entry levels, which causes more problems down the line.

    • HerbGrower@slrpnk.net
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      3 months ago

      Makes me glad I changed job recently to one that has minimal AI usage and doesn’t push it at all.

      Our customers use it even less, although they are struggling in other ways at least the AI bubble isn’t one of them.

  • Zier@fedia.io
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    3 months ago

    Would you like fewer employees? Dumber employees? More expensive employees? Try AI. It will bleed you dry and destroy your business. Available everywhere today!

  • BigMacHole@thelemmy.club
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    3 months ago

    Please please PLEASE help me FIRE my Employees!

    -Billionaires who NEED to NOT be Taxed because they MAKE Jobs!

      • betanumerus@lemmy.ca
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        3 months ago

        It’s very common in the tech industry for expenses to exceed revenues in the first years. Look at Amazon way back. That’s only one of the most famous examples. The difference between revenues and expenses is what I call a profit, regardless of whether that number is positive or negative.

        Edit: Hey downvoters: I’m not the one who built the Amazon story, nor accounting. Sorry to be the one to break it to you but you can pour your bitterness elsewhere: https://en.wikipedia.org/wiki/Profit_(accounting)

  • ChickenLadyLovesLife@lemmy.world
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    3 months ago

    So AI is losing money hand over fist, and the solution is for AI to lose even more money? Thank god our economy is on a sound footing.

    • BigShammy80@feddit.org
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      3 months ago

      The irony in this makes me happy.

      1. Replace workers with AI
      2. AI costs money
      3. CEOs demand lower costs for AI, so their decision to replace workers with AI doesn’t backfire…
      • MrShankles@lemmy.world
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        3 months ago

        Capitalism VS Capitalism

        Who’s gonna win? Who knows!

        Who’s gonna ultimately lose? Well, who gives a fuck, as long as they winnnn!

  • plz1@sh.itjust.works
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    3 months ago

    Prices for services like this do not ever decrease. By 2028, costs will likely be double what they are now.

    • Treczoks@lemmy.world
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      3 months ago

      More than that. At the current discount prices, LLM providers bleed money like mad. They will run out of cash soon if they don’t raise the prices to profitable levels. Just double won’t cover it.

      Which will lead to most customers dropping the LLM services stat. Which in turn will force the LLM providers to up their prices even more…

      • HerbGrower@slrpnk.net
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        3 months ago

        When my last employer opened up a publicly available chatbot they asked us not to test it because of how much it costs. It was a sales bot, we had recently had the company decimated by redundancies.

        A common act of protest was to abuse the public chatbot from a non work device.

    • SocialMediaRefugee@lemmy.world
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      3 months ago

      The last 50 years has shown that the new model is to get a sector of the economy or consumers dependent on a service then once the competition has faded away, jack up the price. Competition either never shows up or collaborates on pricing.

    • BlaestEgnen@feddit.dk
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      3 months ago

      Depends entirely on whether or not Moore’s law has hit a physical limit yet.

      If we’re still doubling computational every X years for the same cost, we’d be able to see same models cheaper. If we’re however finally hitting physical limits, then yeah. It won’t be cheaper and we can’t just smash more context in it like there’s no tomorrow.

      Then the most likely breakthrough would have to be DNA storage (tri point storage, rather than bi point storage) and then we’d need fast read/write to DNA storage. As that’d theoretically allow for more context for the LLMs, context is the biggest bottleneck

  • ShaggySnacks@lemmy.myserv.one
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    3 months ago

    “We need to see the pricing for AI come down,” Arora said.

    As a CEO, you really should know that prices never come down. Prices only go up. Gotta generate that shareholder value.

  • Treczoks@lemmy.world
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    3 months ago

    Ha! Wait until they charge the actual costs and profits! You wish you had not kicked out you most valuable employees…

    • bitjunkie@lemmy.world
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      3 months ago

      Here’s hoping at least some of those laid off band together and start non-AI competitors that blow their former employers out of the water…

  • CapuccinoCoretto@lemmy.world
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    3 months ago

    How many CEOs have thought about how difficult it is to strike when workers have a family to feed?

    Now think about how easy it is to scale down AI labour?

    Also, you gave all your corporate secrets away to the psychopathic class. They will use this for insider trading, hostile M&A corporate intelligence for competitors, American empire building and hostile actions against foreign countries.

  • DriftingLynx@lemmy.ca
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    3 months ago

    😝🤣😂😹

    That’s just the dumbest and most disconnected-from-reality take on AI I’ve heard in a while. Fire your CEO there is no way he’s worth his salary.

  • melsaskca@lemmy.ca
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    3 months ago

    AI: “The best I can do is offer you a substandard “worker”, but it’ll cost you more.”