AI R&D Spending
The cluster focuses on the massive research and development expenditures by tech companies like OpenAI, Google, Meta, Microsoft, and others on AI and LLMs, with discussions comparing these billion-dollar budgets to other industries and debating their necessity and scale.
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They are spending insanely on r and d on this compared to companies their size. 10b a year.
$6B seems like not enough ? Google, meta have spent far more, and have less to show for it than openai (which has also spent more).
Weren’t they spending almost half a billion a year on r&d?
if you say, i wanna build 5 nuclear reactors and I need 200 billion $$. I would believe it because, you can ballpark it with some stats.For tech like LLMs, it feels irresponsible to say 500 billion $$ investment and then place that into R&D. What if in 2026, we realize we can create it for 2 billion$, and let the 498 billion $ sitting in a few consumers.
Sure they do.That's an immense spend by IBM, however lots of big companies spend in the 11 figures on projects.Exxon is spending $20 billion in the next five years to expand its oil refining and chemical operations along the gulf coast.Las Vegas Sands is planning to spend at least $10 billion just to build its Japanese operation.Verizon spent $25 billion or so over 12 years trying to build out FiOS.Wanda Group in China is spending $15 billion to build a Disney park competitor
300k is nothing given the potential profit of this idea working. Tesla probably spends more than 300k on R&D every week.
Valued at 3.2B USD, by investors who have just fired him...It's a sign of how crazy things are when 300M USD can be considered a small amount of money to spend on technology development (particularly for a product that doesn't actually require anything inherently very-very expensive, aside from staffing costs).
A bit curious why you think this. How much do you think the R&D costs were?
I can't fathom how they managed to spend so much on it, though. The product has been around for quite a while, as well, so it's not some initial ramp-up cost. $3B/quarter $10B/year? Wow.Edit: Maybe things like this happen because there are various nerds who lead these products and are good at talking the businesspeople into funding it. Maybe this was only possible at the big tech growth stage while business wasn't that good at telling the value proposition. So en
DeepMind's expenditure is probably upwards of $1bn/year.