Nvidia executive says it costs more to use AI than human employees

Applications of AI


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Nvidia (NASDAQ:NVDA) Vice President of Applied Deep Learning says the cost of so-called productivity gains from AI is greater than what companies typically pay for humans. Brian Catanzaro.

“For my team, the cost of computing far exceeds the cost of employees,” Axios quoted Catanzaro as saying last week.

Catanzaro’s experience is not unique. Uber Chief Technology Officer Praveen Nepali Naga Speaking to The Information early last month, the popular ride-hailing platform has already exhausted its AI budget for this year.

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But companies don’t seem to be deterred by the cost of these AI tools. In fact, they seem to consider it flex.

NVIDIA CEO jensen fan In March, he said he would be concerned if an engineer making $500,000 a year didn’t spend at least $250,000 of AI tokens. About 11% of Uber’s code is currently written by AI, The Information quoted Nepali Naga as saying, adding that the plan is for AI agents to be supervised by other AI agents instead of software engineers.

In a LinkedIn post that went viral last month, startups Swan AI CEO amos bar joseph He boasted that his four-person team’s AI bill reached $113,000 per month.

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The revelation that the cost of relying on AI could exceed the cost of human labor comes as major technology companies are aggressively cutting back on their workforces while adopting AI tools.

Meta Platforms (NASDAQ:META) plans to lay off approximately 8,000 employees this month. Microsoft (NASDAQ:MSFT) has reportedly made a buyout offer to approximately 9,000 of its employees.

Meanwhile, academic research and press coverage have questioned whether the introduction of AI tools has led to increased productivity. Several Amazon employees were recently quoted in the Guardian as saying that in some cases, the use of AI actually hurts productivity.

As companies continue to invest heavily in artificial intelligence, questions about cost efficiency and long-term returns are becoming increasingly important for investors evaluating this space. Rising computing costs and uncertainty around productivity gains are calling for a more nuanced view of how different companies within the AI ​​ecosystem will perform over time.

Platforms like Public allow investors to explore these broader themes through a diversified portfolio that includes exposure to large technology companies and other sectors affected by the growth of AI. Investing across asset classes in one place allows users to react to long-term structural changes in the market rather than short-term cost fluctuations.

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mode mobile

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advisor match

AdviserMatch is a free online tool that helps individuals connect with financial advisors based on their goals, financial situation, and investment needs.. Instead of spending hours researching advisors on your own, the platform asks you a few simple questions and matches you with experts who can help you with areas like retirement planning, investment strategies, and overall financial guidance. Consultations are not mandatory and services vary by advisor, giving investors the opportunity to consider whether professional advice can help improve their long-term financial planning.

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