The AI boom has turned the standard profit margin model on its head, according to Apollo Chief Economist Torsten Slok—and it’s making the industry’s growth unsustainable.
Powerful people are willing to pay a large price to manipulate the masses.
As7de from that, the plan is to lose money for years gobbling up all the data before there’s laws that actually get enforced to protect against it, and to get an entire generation of college kids and workers dependant on using AI, with companies relying heavily on its usage. This is happening to a huge degree right now with data entry, “vibe coders”, Law firms, and healthcare.
Those people won’t really be able to transition back or away from AI. They’ll be dependent on it. And AI will start charging them way more than they are now. And they’ll eat the costs and pay it.
So it’s stealing data while it’s free or nearly free, power to manipulate all the sheeple, create dependency.
I seriously doubt you read that article if that was your only takeaway from it.
Nobody is winning the LLM lab race, all of their unit economics are garbage and every new subscriber actually makes that situation worse instead of better. Furthermore, I’m running a open 30 billion parameter LLM on my laptop via Ollama right now, so what the fuck do I need lyin’ Sam Altman for?
At this point I’m just here to watch Oracle crash and burn.
But it doesn’t work!
You hear all sorts of anecdotes about a business who retrenched their workforce to replace with LLMs, everything comes crashing down and they have to rehire all their workforce at higher rates.
It would be interesting to see actual verified numbers.
I am sure that a lot of useless people can be replaced with computers, but most of the time, all it requires is a very small sh script, it doesn’t need a monstrous data centre that uses more water and power than a human.
It doesn’t work for some people and some businesses and when that happens, it gets blasted all over the place because it makes for a good headline.
Tons of jobs have been replaced by ai, though. Especially customer service chats and online help and a LOT of game production and design art jobs and music and editing jobs.
Plus all the jobs where people are still there but heavily relying on ai.
Powerful people are willing to pay a large price to manipulate the masses.
As7de from that, the plan is to lose money for years gobbling up all the data before there’s laws that actually get enforced to protect against it, and to get an entire generation of college kids and workers dependant on using AI, with companies relying heavily on its usage. This is happening to a huge degree right now with data entry, “vibe coders”, Law firms, and healthcare.
Those people won’t really be able to transition back or away from AI. They’ll be dependent on it. And AI will start charging them way more than they are now. And they’ll eat the costs and pay it.
So it’s stealing data while it’s free or nearly free, power to manipulate all the sheeple, create dependency.
The chatbot labs (and Oracle) quite literally don’t have years.
https://www.wheresyoured.at/brokenomics/
Everybody doesn’t get to win a race…
I seriously doubt you read that article if that was your only takeaway from it.
Nobody is winning the LLM lab race, all of their unit economics are garbage and every new subscriber actually makes that situation worse instead of better. Furthermore, I’m running a open 30 billion parameter LLM on my laptop via Ollama right now, so what the fuck do I need lyin’ Sam Altman for?
At this point I’m just here to watch Oracle crash and burn.
But it doesn’t work! You hear all sorts of anecdotes about a business who retrenched their workforce to replace with LLMs, everything comes crashing down and they have to rehire all their workforce at higher rates.
It would be interesting to see actual verified numbers. I am sure that a lot of useless people can be replaced with computers, but most of the time, all it requires is a very small sh script, it doesn’t need a monstrous data centre that uses more water and power than a human.
It doesn’t work for some people and some businesses and when that happens, it gets blasted all over the place because it makes for a good headline.
Tons of jobs have been replaced by ai, though. Especially customer service chats and online help and a LOT of game production and design art jobs and music and editing jobs.
Plus all the jobs where people are still there but heavily relying on ai.