this post was submitted on 07 Jun 2026
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Both Uber and Spotify (and AWS too) had economics of scale going for them - the more users they have, the more the infrastructure could be leveraged. This does NOT work for LLMs. More users means using more compute, more advanced tasks (like coding) uses exponential amounts of compute. A single user running a complex task can make 8 Blackwell GPUs run full tilt, and you don't even have any guarantee that the output will be useable.
There are a few narrow areas where LLMs might be successful, like scanning for security vulnerabilities or searching large amounts of documents. The massive amount of money invested will never be recouped with these usage scenarios.