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Within the next five years I think we will see the following:
Overall, I agree that developers will mostly be fine. As you say, AI makes them more efficient and can do a lot of the tasks that people are currently being paid for. But the demand is high enough that the job description will simply change. We are going to see much faster iterations and shorter update cycles. Every developer will be several times faster, but this will simply result in the industry moving faster than it did before. Not massive unemployment.
Are you aware Anthropic and OpenAI both have gross margins in the range of 38-70% (depending on how you measure it).
R&D is eye-wateringly expensive, but inference is extremely profitable.
I was not. I guess the question then is if the companies will be able to eventually stop researching and focus on selling, or if they will have to keep doing research to stay competitive.
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Yeah, people are confused because of the big capex expenses but you can compare what the major labs charge for tokens with what the open source models that anyone can run charge for tokens and notice that the labs have to be taking like a 400%+ margin on inference.
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Eh, with the news coming out of Meta, I think this will mean "now your small company can afford to employ a former Silicon Valley developer", but it won't be at Silicon Valley salaries. More employment opportunities, sure, but the days of big numbers on the paycheque will be over. Now you'll be on the same level as administrative staff and the other employees you used to look down on as bullshit jobs.
That trend already began years back when you look at comparative salaries year-by-year. The salary even a new graduate would command 10-20 years ago was far higher than some of the low balls I’ve seen people get within the last 5.
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Software developers do not tend to look at the administrative staff as "bullshit jobs", at least not at the companies I've worked at. If you're going to engage in schadenfreude, at least have good reason.
(The jobs software developers do look at as "bullshit jobs" are as likely to be automated).
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I vaguely expect analog artistic media to rise in popularity. Paint brushes, pens, and such are clear "not AI" status marks. Also live music.
My guess is that they'll rise in status, but not popularity. Like plays and operas relative to films and TV shows, or handcrafted furniture relative to IKEA.
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Those are not particularly lucrative from the standpoint of earning money. Video games, animated movies, and graphic design seems to be where most of the money is at for the painters. Crucially, those are not things people purchase for the sake of status. It is entertainment. Losing opportunities for employment in the entertainment industries seems really bad for aspiring professionals. Art as a status symbol is mostly for rich people, or the artists themselves. So even if it rises in popularity, I would not expect it to suddenly become a viable career path.
Writers probably have it the worst. Even current AI can produce short stories that to most are impossible to tell apart from what is written by professionals.
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Anecdotally, I'm seeing a lot more of that around me. Punk is making a raging comeback.
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This is a very, very high risk strategy for the big LLMs given that they have breached the copyrights of absolutely everyone in the process of training their models on a corpus of copyrighted text. "You can't train an AI model on publicly-available but IP'ed data" is not a net win for Anthropic or OpenAI.
Given the, uh, rather mechanical ways in which models are trained, I could see a precedent that they're not copyrightable as a potential outcome: does it involve more creativity than a phone book? "Turning the crank" doesn't make something a creative work in the US.
But I wouldn't put a huge bet on any particular outcome there.
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I think this is a "rules for thee but not for me" situation. It is in their interest to prevent others from making competing models, so they will want to pull up the ladder behind them in order to destroy further competitors. Whether this will work is a different story, but this is a highly competitive market, and I think these big companies will use their large piles of cash to try and make it a reality.
They do not need to win the lawsuits in the first place. They just need to make their opponents settle by making the process as expensive as possible.
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