> Because they probably would have to pay a lot more to make this profitable at the levels current valuations and investments indicate.
I keep hearing this but this is very unlikely to be true. The cost of LLMs have gone down by more than 30 times in the past 1 year. How much more should it go down until you consider it economically feasible?
Why are they building so many data centers then? That is all cost that has to be earned back. And using them as agents creates much higher costs per interactions than just chatting. We also don't know if the current prices are in any way economical, or how they are related to actual development and interference costs.
Do you think people should have not invested in data centers because of moores law that also applies for cpus? Same mechanics applies there - turns out that when things get efficient, demand increases and more possibilities are unlocked.
When Moore's Law was still effective, did you ask why people produced chips?