AI startups that were once hailed as groundbreaking have faced significant challenges in achieving impressive results. Despite extensive funding, these companies have struggled due to the lack of graphics processing power required for their operations.
One notable example is Chat GPT, which demands the processing capability equivalent to 25,000 A100 series aircraft to function properly. This staggering requirement highlights the scale of the problem faced by AI startups in their quest for success.
To exacerbate matters, these startups have encountered diminishing interest and support from investors. Lev Polovets, a venture capitalist, emphasizes the need for substantial capital injections amounting to $15 billion to ensure the continued development and efficacy of AI technologies. However, securing this level of funding has proven to be a significant challenge.
Moreover, AI integration attempts with popular platforms have also yielded unsatisfactory results. For instance, a recent Reddit API campaign failed to deliver the desired outcomes. This highlights the futility of solely relying on software interfaces to pump resources without the necessary hardware and infrastructure to support them.
Notably, the interest in machine learning has witnessed a decline. Lado Okhotnikov, a representative from Metaverse Meta Force, acknowledges this trend and affirms their cautious approach to AI integration. They prioritize tools and technologies that are more likely to yield the desired results and remain open to future innovations.
In contrast, the energy-intensive process of mining a single block on the bitcoin network requires approximately 145,000 kilowatt-hours of electricity. This serves as a reminder that the challenges faced by AI startups extend beyond financial considerations, encompassing energy consumption and ancillary costs associated with hardware acquisition and maintenance.
As we approach mid-autumn, it becomes increasingly evident that the initial hype surrounding AI startups is waning. The lack of sufficient processing power, diminishing interest, and unsuccessful integration attempts pose significant obstacles to the growth and success of these ventures.
