#ai-bubble — Public Fediverse posts
Live and recent posts from across the Fediverse tagged #ai-bubble, aggregated by home.social.
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"I can’t tell if Zuckerberg is dimwitted or just evil. The problem during the first era of the AI boom (circa 2023) was indeed that Meta was too slow to identify the metaverse flub. But that was no longer Meta’s problem entering the agentic coding era: The problem, rather, was that Meta had no coherent strategy. The last thing it should’ve done was “move fast enough to adopt” because “adopting” was not the answer to Meta’s problems. AI-assisted programming has developed in the last six months — contrary to Zuckerberg’s claim that it “hasn’t really accelerated” — but indeed not in the way Meta expected, because Meta’s vibes-based management this time was just plain wrong. AI never had the potential to replace so many workers at an instant. The vibe was — unlike in 2023 — not late, but wrong entirely. And I’m confident in saying only a fool could have lent credence to that laughably incorrect theory."
https://eshumarneedi.com/2026/07/03/zuckerberg-admits-metas-layoffs-were.html
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"I can’t tell if Zuckerberg is dimwitted or just evil. The problem during the first era of the AI boom (circa 2023) was indeed that Meta was too slow to identify the metaverse flub. But that was no longer Meta’s problem entering the agentic coding era: The problem, rather, was that Meta had no coherent strategy. The last thing it should’ve done was “move fast enough to adopt” because “adopting” was not the answer to Meta’s problems. AI-assisted programming has developed in the last six months — contrary to Zuckerberg’s claim that it “hasn’t really accelerated” — but indeed not in the way Meta expected, because Meta’s vibes-based management this time was just plain wrong. AI never had the potential to replace so many workers at an instant. The vibe was — unlike in 2023 — not late, but wrong entirely. And I’m confident in saying only a fool could have lent credence to that laughably incorrect theory."
https://eshumarneedi.com/2026/07/03/zuckerberg-admits-metas-layoffs-were.html
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Ed Zitron tears apart the AI industry in 8 minutes on CNBC. We've been screaming about this for three years on Mastodon but this is the tragedy that ensues by having an economy run by clueless rich kids:
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Ed Zitron tears apart the AI industry in 8 minutes on CNBC. We've been screaming about this for three years on Mastodon but this is the tragedy that ensues by having an economy run by clueless rich kids:
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Is AI Profitable Yet? #ai #aibubble
https://isaiprofitable.com/ -
Is AI Profitable Yet? #ai #aibubble
https://isaiprofitable.com/ -
“The problem for the AI industry is that the externalities are growing faster than their plans to address them. In his op-ed, Altman offers up the usual list of future AI miracles to justify the disruptions to come: “the power to heal people, to discover cures and to deliver abundance on a scale the world has never known before.”
In the meantime, though, what AI is delivering at an unprecedented scale is annoyance. If the industry doesn’t start paying more of its share of the cost, and soon, the AI backlash of tomorrow will make today’s seem quaint by comparison.”
https://www.platformer.news/ai-backlash-data-centers-jobs-inflation/
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“The problem for the AI industry is that the externalities are growing faster than their plans to address them. In his op-ed, Altman offers up the usual list of future AI miracles to justify the disruptions to come: “the power to heal people, to discover cures and to deliver abundance on a scale the world has never known before.”
In the meantime, though, what AI is delivering at an unprecedented scale is annoyance. If the industry doesn’t start paying more of its share of the cost, and soon, the AI backlash of tomorrow will make today’s seem quaint by comparison.”
https://www.platformer.news/ai-backlash-data-centers-jobs-inflation/
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“Companies across tech, entertainment, banking, and many other industries are throttling their employees’ use of AI and pleading with workers to use less powerful models to stop AI costs from spiraling out of control, according to leaked Slack chats, screenshots of internal dashboards, emails, and more material obtained by 404 Media from half a dozen companies including Atlassian, Adobe, and Amazon. In at least one case, AI spending has tripled to more than $15 million a month.
The news shows the looming fallout from companies adopting AI as quickly as possible, and AI providers’ moves to charge enterprises based on how much they use AI rather than a flat fee. Emails obtained by 404 Media even show some companies cutting off access to some AI models altogether in an attempt to stop burning through their AI tokens, and big tech companies like Adobe are ending unlimited access to Claude.
“A lot of people had ideas about how to adjust workflows with lower-reasoning models for certain tasks in order to mitigate token consumption,” an Adobe employee told 404 Media. “But I am not sure that they fully absorbed the news, and I'm not sure the full ramifications are going to be clear to everyone until it goes into effect.” 404 Media granted multiple employees at companies using AI anonymity because they weren’t permitted to speak to the press.“
https://www.404media.co/companies-are-throttling-employees-ai-use-because-its-too-expensive/
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“Companies across tech, entertainment, banking, and many other industries are throttling their employees’ use of AI and pleading with workers to use less powerful models to stop AI costs from spiraling out of control, according to leaked Slack chats, screenshots of internal dashboards, emails, and more material obtained by 404 Media from half a dozen companies including Atlassian, Adobe, and Amazon. In at least one case, AI spending has tripled to more than $15 million a month.
The news shows the looming fallout from companies adopting AI as quickly as possible, and AI providers’ moves to charge enterprises based on how much they use AI rather than a flat fee. Emails obtained by 404 Media even show some companies cutting off access to some AI models altogether in an attempt to stop burning through their AI tokens, and big tech companies like Adobe are ending unlimited access to Claude.
“A lot of people had ideas about how to adjust workflows with lower-reasoning models for certain tasks in order to mitigate token consumption,” an Adobe employee told 404 Media. “But I am not sure that they fully absorbed the news, and I'm not sure the full ramifications are going to be clear to everyone until it goes into effect.” 404 Media granted multiple employees at companies using AI anonymity because they weren’t permitted to speak to the press.“
https://www.404media.co/companies-are-throttling-employees-ai-use-because-its-too-expensive/
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KI 🤖 wird bleiben und das Leben und den Job der meisten von uns stark verändern.
Aber die Blase 🫧 wird trotzdem platzen, es wird zu viel Geld 💵 hin und her geschoben.
https://www.ad-hoc-news.de/wissenschaft/ki-blase-warnung-bis-sieht-risiken-wie-in-der-finanzkrise-2008/69647992 -
Meta is developing plans to launch a cloud infrastructure business that would allow companies to rent AI computing power and access its AI models.
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Meta is developing plans to launch a cloud infrastructure business that would allow companies to rent AI computing power and access its AI models.
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Whether a reported 5% of OpenAI is a potential gift to the American people, or Sam Altman trying to hedge against the AI infrastructure bubble collapsing, is a question more people should ask.
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Whether a reported 5% of OpenAI is a potential gift to the American people, or Sam Altman trying to hedge against the AI infrastructure bubble collapsing, is a question more people should ask.
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@asltf: Jo.
@wurzelmann: Warum nur muss ich jetzt an die Stelle aus dem ersten Werner-Film "Werner — Beinhart!" denken, wo aus Versehen Drehbuchanweisungen vom Erzähler vorgelesen wurden?
"Der Ball ist im Imbiß auf die heiße Pfanne gefallen. Er wird größer und größer bisser explodiert…"
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@asltf: Jo.
@wurzelmann: Warum nur muss ich jetzt an die Stelle aus dem ersten Werner-Film "Werner — Beinhart!" denken, wo aus Versehen Drehbuchanweisungen vom Erzähler vorgelesen wurden?
"Der Ball ist im Imbiß auf die heiße Pfanne gefallen. Er wird größer und größer bisser explodiert…"
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The USA is also turning against AI
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The USA is also turning against AI
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AAny sufficiently advanced [biomimicry] is indistinguishable from [AI] [to the marketing team]"
What #ArthurCClarke really meant.
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AAny sufficiently advanced [biomimicry] is indistinguishable from [AI] [to the marketing team]"
What #ArthurCClarke really meant.
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https://winbuzzer.com/2026/07/01/big-tech-ai-spending-turns-cash-flow-into-investor-test-xcxwbn/
Big Tech's AI capex race is pushing cloud hyperscalers toward a hard cash-flow squeeze as infrastructure costs grow faster than operating cash flow.
#AI #AIBubble #AIInfrastructure #BigTech #Hyperscalers #AIInvestment #Microsoft #Amazon #AlphabetInc #MetaInc #Oracle
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https://winbuzzer.com/2026/07/01/big-tech-ai-spending-turns-cash-flow-into-investor-test-xcxwbn/
Big Tech's AI capex race is pushing cloud hyperscalers toward a hard cash-flow squeeze as infrastructure costs grow faster than operating cash flow.
#AI #AIBubble #AIInfrastructure #BigTech #Hyperscalers #AIInvestment #Microsoft #Amazon #AlphabetInc #MetaInc #Oracle
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RE: https://mastodon.social/@elsua54/116839989797150322
There's also this nugget buried in the article:
"proprietary models trained on company-specific data can add genuine value, while public LLMs applied to tasks they are poorly suited for produce “generic prose that often contains mistakes.”
@pluralistic and others have been saying for some time that there are genuine use cases for #AI...but none that justify the insane valuations of AI companies
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RE: https://mastodon.social/@elsua54/116839989797150322
There's also this nugget buried in the article:
"proprietary models trained on company-specific data can add genuine value, while public LLMs applied to tasks they are poorly suited for produce “generic prose that often contains mistakes.”
@pluralistic and others have been saying for some time that there are genuine use cases for #AI...but none that justify the insane valuations of AI companies
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"The Singularity is upon us!"
What an utterly sustainable and intelligent practice, these AI enhanced companies will be going far! /s
#Business #Technology #Claude #Codex #GenAI #AIBubble #Tokenpocalypse
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"The Singularity is upon us!"
What an utterly sustainable and intelligent practice, these AI enhanced companies will be going far! /s
#Business #Technology #Claude #Codex #GenAI #AIBubble #Tokenpocalypse
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Burst of the #AIBubble? The “bank of central banks” just published its annual report - saying that’s not as unlikely as we might think.
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Burst of the #AIBubble? The “bank of central banks” just published its annual report - saying that’s not as unlikely as we might think.
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AI Fear and loathing 1: https://www.bloomberg.com/news/articles/2026-06-26/chinese-hedge-funds-warn-the-ai-super-bubble-is-ready-to-burst
AIF&L 2: https://www.ft.com/content/e81ce414-e4bd-4e8c-bac7-94f7bf17def4?syn-25a6b1a6=1
AIF&L 3: https://www.bloomberg.com/news/articles/2026-06-26/ai-anxiety-is-fueling-burnout-across-silicon-valley-s-tech-workersThat last one is really soul-shredding.
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AI Fear and loathing 1: https://www.bloomberg.com/news/articles/2026-06-26/chinese-hedge-funds-warn-the-ai-super-bubble-is-ready-to-burst
AIF&L 2: https://www.ft.com/content/e81ce414-e4bd-4e8c-bac7-94f7bf17def4?syn-25a6b1a6=1
AIF&L 3: https://www.bloomberg.com/news/articles/2026-06-26/ai-anxiety-is-fueling-burnout-across-silicon-valley-s-tech-workersThat last one is really soul-shredding.
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How the #AIbubble could pop and take down the global #economy
#CentralBank for central banks sees shades of dotcom mania in hyperscaler capex binge
In 2026 annual report, Bank for International Settlements compared current craze to historical events, including canal and British railway mania in the 1800s, electrification exuberance of the 1920s, and the dotcom boom of 1990s.
B#IS estimates 5 largest #hyperscalers to spend more than a trillion dollars on #AI capex in 2026.
https://www.theregister.com/ai-and-ml/2026/06/29/how-the-ai-bubble-could-pop-and-take-down-the-global-economy-according-to-the-bis/5263793 -
How the #AIbubble could pop and take down the global #economy
#CentralBank for central banks sees shades of dotcom mania in hyperscaler capex binge
In 2026 annual report, Bank for International Settlements compared current craze to historical events, including canal and British railway mania in the 1800s, electrification exuberance of the 1920s, and the dotcom boom of 1990s.
B#IS estimates 5 largest #hyperscalers to spend more than a trillion dollars on #AI capex in 2026.
https://www.theregister.com/ai-and-ml/2026/06/29/how-the-ai-bubble-could-pop-and-take-down-the-global-economy-according-to-the-bis/5263793 -
Organisations are becoming increasingly concerned about the rising cost of AI. With many projects yet to demonstrate a positive return on investment and expenses continuing to climb, IT leaders are looking for ways to optimise their spend.
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Organisations are becoming increasingly concerned about the rising cost of AI. With many projects yet to demonstrate a positive return on investment and expenses continuing to climb, IT leaders are looking for ways to optimise their spend.
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Yeah, the line item shock is real! 😅 Once inference stops being free, cost-per-query becomes the boss. It’s not about the biggest brain; it’s the smallest price tag that fits the job. llm-bench benchmarks models on cost vs quality per task type https://post.kapualabs.com/2th7ys87. Helps spot waste before it burns budget. Efficiency > Hype always. 📉 #AIBubble
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The current LLM paradox boils down to this:
The AI companies like OpenAI have to subsidise the product because few people are willing to pay for the true cost of inference because the value created is not there, making them bleed money.
They can also demand users to pay for the true cost of inference which means few users can justify value created vs the cost of inference or Return on Investment (ROI).
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It's funny how the AI bubble seems to be blowing up as people are starting to have to pay for the true cost of inference.
It all boils down to where the money is. LLMs have been loss leaders for nearly four years now and the model development has slowed down.
For entertainment, check out Ed Zitron and David Gerard now that the narrative is fracturing and MBAs have been wrong about this for nearly four years.
