Technology

Im so tired of this stupud fucking refrain. Cause we all know how housing got so mich better after 08 and how we dont have any more dot coms and how the internet got so much better since that bubble. You people have no idea what your even asking for.

Me too. I can then go back to 3D printing quantum blockchains out of room temperature superconductors in my private space station with Katy Perry.

aka enshittification

Already the cost is quite high. A prolific year can easily burn 100usd a day in tokens and they have not even started to enshitify.

Some of the cost to run these models will come down a bit if Nvidia gets some actual competition which I'm sure will happen in the medium to long term because the hyper scalers definitely don't like paying Nvidia's AI ransom and the Chinese don't want to be beholden to a company the US can influence.

We will see which happens first.

YouTube as well.

Venture capitalism is what it's called, I think

I was in a local bike store looking at red tail lights yesterday.

One brand Lezyne had several versions. There was an "AI Alert" one. I looked it up and it just has a sensor to detect when you brake and it changes to a different flashing mode at that time.

Thats barely even "smart" let alone "AI".

The stupid thing is, because of this dumb claim they needed to confirm that it doesn't collect and transmit any data about your riding habits. Its a light with no connectivity other than a charging port.

The dumbfuckery is astonishing.

Yep, and they were helped a lot after the 2008 financial crisis when interest rates were dropped super low and loans were cheap. That's a major reason why the market has been screaming for the fed to cut the interest rate as much as possible.

after crypto, and Now AI, they will be chasing whatever faux tech that comes out next.

Holy crap, has anyone ever attempted to create an "AI fork bomb"? Go to one of these agent bots, and tell it to create accounts with the other agent code bots. These new accounts will all be told to create accounts on all the other code bots services. And do this recursively forever. So the flow would be 1 bot makes lets say 5 bots. Each of those 5 bots make 5 more bots. And each of those 5 bots make 5 more. So the total number of running bots becomes like 1 * 5 * 5 * 5 * 5...

Obligatory, this is purely hypothetical, and you should never do this for legal reasons.

A lot of startups whose entire business model relies on OpenAI's small model API calls costing under $1/Mtok, are going to go bust when OpenAI finally runs out of money and ramps the cost up tenfold.

There is another factor in this which often gets overlooked. A LOT of the money invested right now is for the Nvidia chips and products based around them. As many gamers are painfully aware, these chips devalue very quickly. With the progress of technology moving so fast, what was once a top of the line unit gets outclassed by mid tier hardware within a couple of years. After 5 years it's usefulness is severely diminished and after 10 years it is hardly worth the energy to run them.

This means the window for return on investment is a lot shorter than usual in tech. For example when creating a software service, there would be an upfront investment for buying the startup that created the software. Then some scaling investment in infrastructure and such. But after that it turns into a steady state where the input of money is a lot lower than revenue from the customer base that was grown. This allows to get returns on investment for many years after that initial investment and growth phase.

With this Ai shit it works a bit different. If you want to train and run the latest models in order to remain competitive in the market, you would need to continually buy the latest hardware from Nvidia. As soon as you start running on older hardware, your product would be left behind and with all the competition out there users would be lost very quickly. It's very hard to see how the trillions of dollars invested now are ever going to be recovered within the span of five years. Especially in a time where so much companies are dumping their products for very low prices and sometimes even for free.

This bubble has to burst and it is going to be bad. For the people who were around when the dotcom bubble burst, this is going to be much worse than that ever was.

That’s the usual business plan. However, people don’t really like ai. The results aren’t great, so, if they jack up the price, people will likely cancel. The lock in is poor as the product and convenience is poor. It doesn’t really save money as promised.

you're VERY justified in feeling skeptical, I'm seeing it first hand, you're correct.

I'm a consultant/freelancer and I'm booked for the rest of the year and well into the new year with jobs that pretty much consist of me reviewing and cleaning up AI slop.

Most of my clients are startups and small companies that went full in on AI and vibe coding. Now they're discovering that their attempts to save a few bucks by leveraging AI, cutting devs, etc is costing them more that what they envisioned on saving. The stuff they've built with AI doesn't scale, is full of exploits, and breaks quickly. With the recent Tea App thing many of my clients are now in a panic because they essentially did the exact same thing. They don't want their startup to be next in the news because some rando came across their house with the front door left open by AI.

the tech debt is massive, It's costing many of these places more to fix their vibe coders/AI mistakes than what it would have originally cost if they just used a solid dev team. Make no mistake, I'm charging them a good amount also.

All if it could have been avoided though. They could have continued to use their LLM's if they had all just kept a leash on it. if they dismissed the concept of vibe coding. A good chunk of it could have been avoided if the person feeding the prompts simply REVIEWED the code before hitting enter. I'm not kidding, IF they just LOOKED at what was being spat out things would be different. none of them did. they just trusted the AI to be smarter because they were lead to believe it was.

Ok, but it isn't just startups burning money here like there's no tomorrow - it's also major industry leaders (Microsoft, Facebook, Apple, Google, Nvidia, etc.) dumping hundreds of billions into infrastructure and development of a tech that has, so far, shown 0 positive returns for anyone and everyone. Everyone involved is pouring in money like it's going out of style, largely because they see this as a potential pathway to infinite profits down the line, just as long as THEY are the ones to get there first; consequences be damned. WHEN this bubble pops, not IF, it'll be messy. Extremely messy.

Ed Ziltron has a good piece regarding whether the losses are “just another startup” or something more. I am very much leaning towards “burning money at an insane rate just to give the impression of growth”.