• 17 days

    January: We’re going AI native, please use AI as much as possible.

    March: Everyone needs to attend workshops on how to maximize AI productivity.

    July: Some models are only available for special (properly justified) cases. Speak to your manager. Turns out that some people did everything (even commits) with top cost models.

    August: Ok, we’re setting some limits on token usage, due to some people spending 1000% over the average.

    September: we are creating additional frameworks and limits to AI use.

    It took a bit of time for the actual AI cost/benefit to reach the top management and put some hard numbers in contrast with the hype machine, but it’s happening.

    • 17 days

      Everyone who was paying attention even a little bit has known this would be the trajectory from the beginning. And we haven’t even gotten to the crazy price hikes per token that are coming.

      • 17 days

        And we haven’t even gotten to the crazy price hikes per token that are coming.

        Why do you think that?

        IMHO, API prices are likely to drop over time as we scale up and efficiencies are found, combined with general pricing pressure from the competition… SOTA models will continue to have SOTA prices, of course, but reasonable priced distilled and open weights models are already common.

        A consequence of API prices dropping is that “heavily discounted” consumer plans will also adjust and won’t be so generous relative to API prices.

        • IMHO, API prices are likely to drop over time as we scale up and efficiencies are found, combined with general pricing pressure from the competition… SOTA models will continue to have SOTA prices, of course, but reasonable priced distilled and open weights models are already common.

          Some of this seems like wishful thinking to me.

          “as we scale up” We already have large data centers, and, if anything, “scaling up” is just driving up expenses for debt and hardware. The real problem with AI, relative to the internet boom, is that the more you use it, the more expensive it is. The economies of scale to be taken advantage of are minimal.

          I do think price of compute will come down, but exactly because people will be running their own open source models on their own hardware instead of Sam Altman to stack GPUs in a warehouse, but it will still be too expensive and inaccurate.

          And we’re still headed for a financial cliff in this scenario.

          • 17 days

            Like a fraction of a percent of people will run their own models. It won’t influence price. Remember that coders/tech people are only a minority of users.

            • Oh, I see. I was mistaken. I thought tech companies were OpenAI’s major customers, and they certainly could make their own data centers for internal work, and that coders–that minority of users–were the only ones likely to pay full price for tokens, the rest of us wouldn´t be willing to pay full fare for a machine that is right most of the time sort of. Thanks for setting me straight on that.

        • They were supposed to do their IPO and have positive cash flow already. Time is running out before investors are getting antsy and there’s no more money available for scaling up.

          • 16 days

            They gobbled up the easy money… now they have to work harder for more, and yeah, they may have to slow down a bit and embrace fiscal responsibility… I expect to see restructuring of debts along the way, but I’d be very surprised to see any of the major US based players implode.

            • 16 days

              Both Anthropic & OpenAI have debt repayments coming up in 2027 that:

              • cannot be restructured
              • cannot be postponed
              • they absolutely cannot pay back without even more VC money, and that faucet is being cut off right now.
              • 16 days

                Both Anthropic & OpenAI have debt repayments coming up in 2027 that:

                • cannot be restructured
                • cannot be postponed
                • they absolutely cannot pay back without even more VC money, and that faucet is being cut off right now.

                Well then. I stand corrected. The random Internet person with unprecedented access into the books & private financial dealings of two major competitors has an air-tight argument.

                I suggest we come back to this thread in a year’s time and see how it is playing out.

                • 14 days

                  It’s actually common knowledge if you’d just fucking look.

                  Also, LOL

                  That’s a capital furnace. Not a company that will ever turn a profit.

    • 17 days

      My company is at the July stage. Who knew giving people unrestricted access to Claude enterpise with no training would blow through budgets in days

      • Our management is so “forward-looking” that we are still in the March stage: they want AI used everywhere, and added everywhere in the product.

        Saying that sometimes you still need to use the brain for big decisions will make some people question your prompting skills publicly.

        Hell, we even rebranded the whole company to be an “”“AI company”“”. I hate it there and I sense layoffs coming soon, but finding a job in this period is hard. Wish me luck.

  • 16 days

    Ah see, they’re forgetting to tell AI “make no mistakes”

    • 15 days

      And use best practices. Or it won’t use best practices. Which best practices? Best practices, you luddite, don’t you know the best practices? Which specifically? Best practices!!!

      I just don’t understand this, one can make a wall out of lots of cardboard if it’s ventilated and covered from wind and snow and rain and mist and whatever else. What one shouldn’t do is to expect that wall to be as good as a brick wall.

      It’s a tool to shoot slop code where humans too repeat slop code. Replace stupid and sizey code with machine-generated same thing, but cheaper.

      One would expect a commercial product to not be something main features of which rely upon generated code. At least without proper testing. Eh, OK, now I’ve remembered how I work.

  • I’ll admit I’m experiencing a degree of pleasure in thinking about how nervous Anthropic and OpenAI must be with their IPOs supposedly coming up.

    • They’re already billionaires many times over. Hard to feel nervous with that kind of wealth in your pocket

      • If they weren’t needlessly nervous (by that I mean paranoid), they would not be in that position. Whatever their wealth, those people cannot feel safe.

          • Musk is never happy. He’s either chasing a ketamine high or getting rage baited on twitter. Real daddy issues with him. Zuck is just a hollowed out human.

    • 16 days

      OpenAI already explicitly postponed their IPO somehow hoping for a better climate to IPO in…

      A certainly… optimistic expectation.

      • You should not try to make sense of a decision they probably used chatGPT to make. It’s bad for your metal health

    • What’s stopping people from using open sourced trained models? Like, why are tokens going to be needed in the future? Isn’t this their whole business model?

      • If you want it well rounded I can see the argument for enterprise but for me personally I programmed one on my workstation and it’s trained on very specific things I think it barely uses up all 24gb vram I have available.

        • 16 days

          come on, I’ve trained toy size models too, you can’t seriously say they’re even vaguely approaching the capability of models that takes a whole massive server farm weeks or months to train.

          • If you do one simple task like I do in my job yes you can make a small one purpose built. Work in reading comprehension before commenting. If you re read which I know might be hard for you, you can see I said make it for a specific task. Example for you since you’re going to try and counter because you’re an idiot. I have to fill in the same multiple fields on an excel table for state documents. This is pulled from a sql database I literally have a model where it does that for me with natural language processing instead of me being a tool and using python exclusively when I already did that to make the easy simple tool. I suggest Amazon for reading comprehension before commenting books. If you message back I’ll send you some recommendations I tell to my students.

  • Can’t wait to see this exact headline another 50 times but none of the companies in question facing any consequences for their actions, profit driven society is so fucking stupid.

  • 17 days

    Management spent two years demanding everyone use AI, then discovered everyone was using AI. Now they’re shocked the office is a conveyor belt of hallucinated PowerPoints reviewed by other bots. The real productivity breakthrough will be executives learning that buying subscriptions isn’t a business strategy.

    • After talking to some people who actually have been forced to work with AI on projects in teams Its been horrifying to find how little time they are given to build out proper safe guards, rules and test the process.

      Management seems to be expecting these stupid robots to work the first time every time

      Even in small projects for every 8 hours of work there’s a good hour or two of adjusting memory, standing rules, hooks, and countless other things.

      It’s endless upkeep. Every shift in work flow tends to create knock on effects.

      Management of the bot it self becomes a massive work load if you want them to be even remotely reliable.

      I’m not surprised their use in a corporate environment is backfiring massively.

      • 17 days

        I sort of know what you mean. The company I work for has been encouraging the use of AI/LLMs. But some of the company leadership has been smart about it. We recently got some AI agents to use as tools in our workflow. However, they tested the agents for a few weeks before allowing us to use them, so that they know the agents do what they’re suppose to do.

        • However, they tested the agents for a few weeks before allowing us to use them, so that they know the agents do what they’re suppose to do.

          I hope they’re planning on doing that for every model change, or pinning it to a specific model. Otherwise, you’re gonna have a bad time when model updates completely change how the bot functions.

    • 17 days

      I just wish my company would start hiring again. I have been using the AI out of necessity, because we are short-staffed in certain areas. I’ve asked several times, directly, how much my AI use is costing and nobody is in a position to know. It’s certainly helped in some areas but I want to build a case that hiring a college grad or two can help more…

    • Yeah, turns out the executive class, the would-be nobility, are incompetent idiots by their own standards, and are primarily driven by their own malignant sociopathic narcissism, not any of the stories they tell about themselves.

      If you want competent executives, they’d need an actually effective selection pressure that punishes incompetence and rewards competence… but they already destroyed that.

      So, either we, or somebody, builds some mechanism or system that does that… or they all preen themselves rigourously while steering the ship directly into an iceberg, with all of us onboard.

      They will genuienly not understand why we hate them for killing us all.

  • 17 days

    At our company, 12 months ago they said everyone wasn’t using enough AI. They even made a leaderboard to see who was using the most tokens in the business and encouraged more and more.

    A couple of months ago, everyone’s AI spend was restricted to $100/month without warning. Entire workflows broken overnight because people had built theirs around Claude skills that used stupid amounts of tokens.

    Now they’re starting layoffs. Go figure.

  • 17 days

    they cut our copilot budget to 19€ per person (you can request more. but of course it’s a hassle)

    they still insist AI the future and more AI is better. they are just now shifting the blame to employees: “you need to think more about how you use it”, “you cannot just throw tokens at a problem”, etc

    two months ago I got an email from a manager asking me why my AI spending was so low.

  • 17 days

    Ernst and Young say 36% of companies using AI have experienced catastrophic incidents.

    Hopefully some of them go bankrupt. That would be a stellar way to get rid of some bad management.

    • 17 days

      get rid of some bad management.

      Good luck. Like cockroaches, they’d probably survive a nuclear holocaust.

    • 17 days

      Hahaha. No. Management is not losing jobs over this. Not in the quantities needed.

      • If anyone important does get fired they’ll just get re-hired by another company who needs some doofus to fill a position in upper management.

  • Nah. No they aren’t. Maybe a few did, but there’s still enough assholes spending money on pushing AI and using AI that it fucks up a bunch of society, still.

    • They have contracts, the article headline could be correct and everybody would likely still be locked in contract.

  • 15 days

    Currently the market allows me to run the AI then do something else meanwhile, and still counting 8 hours work, and meanwhile delivering more than before with less work. It’s my personal Claude subscription and it doesn’t cost much. As long as it works and worth it I will use it.

    There are features in the app where code quality doesn’t matter, like a status page in admin panel. I can regenerate any time with a good prompt.

    And sometimes there are stuff where I need to use my coding experience, because it’s too unique feature. But still I’m faster, not just feeling faster.

    • You’re a coward and a fool

      Proof you’re a coward: you use Claude to do your work instead of just not doing work and still getting paid. Most corporate places you only have to look busy, not actually to do any work.

      Proof you’re a fool: you’re willing to spend your own money to help someone else steal your labour

      • 15 days

        No I get money while working less. You are the fool. The change is inevitable, the economy needs less and less real programmers. I cannot influence it, it will happen no matter how you hate it. And meanwhile I’m working on the B plan.

        And I’m self-employed it’s not a big corporate space.

  • 16 days

    I’d love more of the msm to pick up these articles.

    I need to convince my family this current state of AI is just smoke, mirrors and debt, but i need a normie-credible source to anchor it.

    Does anyone know of one? Guardian would do.

    • 16 days

      MSM is too scared to talk about these topics. If the AI companies fall, the global markets will crash. Banks lend out too much money to those companies, same for retirement funds and the owners of those media.

      This might be a case of too big to fail and “look out China will use it to destroy us”. That’s what those AI companies are betting on at this point. Their last hope, apart from continuing the deception for as long as possible.

      • 16 days

        China is already eating our lunch in everything else. At this point, I’m just gonna learn some mandarin and wear a jade necklace.

      • 16 days

        I don’t want them to plan their lives around it. My brother is thinking of switching career and my parents have some investments etc based around line-go-up.

        But also I just look like a conspiracy guy until the bubble pops, but then im the “i told you so guy” and that sucks.

        • 16 days

          I would just tell them to think long term instead of focusing on the new shiny thing. Software development is still a perfectly valid skill to learn, and if your investments are in tech ETFs or mutual funds, they’ll be managed and hedged against avoid losing a significant amount of value.

          If they still want to chase the shiny thing, you can’t logic them out of an illogical position. All you can do is recommend they have a fallback cushion, and only invest time/money/effort that they can afford to lose.

          • 15 days

            They’re not chasing the shiny thing. Theu just think it’s business as usual.

            I’m not sure what they’d do differently, but they’d be able to make the decisions based on all the info, as opposed to what they have now.

  • 17 days

    and this is why I’m retiring in two weeks. They don’t get it, they never will. my work as a contractor trying to code review their slop and telling them what they needed to change fell on deaf ears. they cut me a cheque, thanked me for my time, and it was onto the next company/startup to perform the same song and dance.

    i’m done. I’m done with the tech industry. 25 years just poof, gone. I’m in my mid 40s, i’m single, i own my condo, i’m done. I’m going to sit on my ass all day, play videogames, and clear out my codeberg and delete everything. I’m not even going to work on FOSS stuff anymore, i’m not going to maintain anything, I’m not going to contribute. I’m done. I want nothing to do with this crap.

    • 16 days

      Unfortunately the truth is AI is probably going to get good enough that it won’t matter anymore. I guess I’m just hopeful that it’s gonna build a space elevator or something and we actually get some benefit out of surrendering agency. There are enough open weight models that the millionaires won’t get there tech bro mad max dysutopian fantasy world with them at the top.

      • We might one day create AI that is good enough for this but it won’t be anything based on the currently trending transformer-based LLMs

        Source: I completed a PhD in Natural Language Processing and transformers 2018-2022 and unfortunately for my own sanity I am still in the space

        • I did my master’s thesis on AI feature extraction during the same time period. I’ll second what this person is saying.

    • Everyone I’ve seen retire at 40 ends up drinking every day from midday and watching game shows for hours on end.

      Point being, find something else to focus on or you’ll drift.

      And enjoy!

      • Skill issue. I was long term unemployed and it was the most fun I’ve had as an adult. I leaned into my hobbies, built a boat, and became a published author. People who just wanna drink all day will do that whether they have a job or not 😂