this post was submitted on 10 Aug 2025
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Techcrunch reports that AI coding tools have "very negative" gross margins. In other words, they are losing money on every user. (techcrunch.com)
submitted 4 days ago* (last edited 4 days ago) by Davriellelouna@lemmy.world to c/technology@lemmy.world
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[–] normalexit@lemmy.world 2 points 2 days ago

They are in the train the trainer phase where developers are training their models and getting some benefit from the results it spits out.

The enshitification will begin soon. They have already talked about inserting ads in responses.

I fear people will grow attached to AI chats, which will emotionally manipulate them into buying stuff or supporting specific causes. The ads on a platform like this are going to make google AdWords and pay per click feel like advertising in the newspaper.