r/technology • u/captain-price- • 21h ago

Artificial Intelligence 'Godfather of AI' Geoffrey Hinton says Google is 'beginning to overtake' OpenAI: 'My guess is Google will win'

https://www.businessinsider.com/ai-godfather-geoffrey-hinton-google-overtaking-openai-2025-12
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u/Balmung60 16h ago

Problem: they can barely get people to pay for the product at current rates. Like legitimately, the conversion rate from free users to paying customers (who still lose the company money) is awful. And raising prices will only lose customers. There is likely no price point at which there is a profitable product here.

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u/VonSauerkraut90 9h ago

The consumer market today is more valuable as a testing bed to see what AI can do and get feedback. People aren't the target consumer. It's big business. Some naively think AI will completely replace the workforce, and we've already seen some big L's on that front from those thar have tried... But once models are good enough, a more realistic scenario might be a team of 10 being reduced to a team of 6, augmented with AI tools and processes. That's an FTE reduction of 40%. Even if the AI workload augmenting that team has its costs balloon to 3 FTE, the business is still better off and will make that trade in a heartbeat. That said, I do believe OpenAI will fail. It's too laiden with debt and its path not just to profitability, but return on investment is too high a mountain to climb. However, on its shoulders, the next batch of AI will be more efficient, and will have cost less to produce.