this post was submitted on 30 Oct 2026
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I understand the numbers are truly staggering, but I've also been around the block enough times to know employers and investors will go to unbelievable lengths to save costs on labor. If the 1% believes AI is going to cut labor costs, then nothing will stop them. Nothing.
Elon said it. The big companies with other sources of revenue, like SpaceX, Google, Microsoft, and Facebook will survive. It's the myriad of startups that are neck deep in debt for building out data centers that will fall.
And, while eventually AI might fulfill its promise, it's not a given. It may not be possible with any amount of money and effort, like faster than light travel.
With the current tech, AGI is literally impossible. They believed scaling, clever architecture, and context window tricks would solve the issues of the current LLMs, but fundamentally diffusion and backpropagation cannot iteratively learn as they have no way to train during inference.
That doesn't matter if the house walls are coming down because the cards are falling. Of course there is something that will stop them, the real cost of LLMs. There are no real costs yet, they are hidden by the bubble. The 1% loves cutting labour cost but not when that means losing money.