As AI skeptic I must also present question how profitable? Unlike previous "tech" and products. There might not be marginal costs for extra units. Instead each generated answer or message use significant amount of power and needs large physical investment in infra.
And if generating those messages are cheap, well there might be competition as price maters more than quality to enough of users.
See, I am not an AI skeptic in the sense that I don't think the tech is great, I mean its kinda great but its also a lot overhyped tbh, but I mean its definitely a mix bag of opinions for me imo
But there are some people who think that just because a tech is great fundamentally makes it oh so lucrative and profitable.
That is the one thing that I really really took away from intelligent investor. And I think he even paraphrased it that this should be the one thing you should take away from the book iirc but I am not sure
Its that, just as how historically airplane companies have been kinda bad in profit even though they are technologically marvels. It doesn't matter the tech if there is a P/E mis-match imo / stock price is overvalued.
The same goes for tech.
You can appreciate tech while still thinking that its sort of being a bubble/shit's not good.
And if generating those messages are cheap, well there might be competition as price maters more than quality to enough of users.