Join Nostr
2026-07-02 16:00:29 UTC

oatmeal on Nostr: AI Losses Are About To Spiral Out Of Control Because when they charge anything close ...

AI Losses Are About To Spiral Out Of Control

Because when they charge anything close to the real cost, it's cheaper to simply hire humans… they can't cut costs (economies of scale), they can't raise prices (makes the product useless), and their VC/borrowing money is drying up. Last move seems to be to go public and get regular people's (and pension funds) money to keep the lights on.

https://wlockett.medium.com/ai-losses-are-about-to-spiral-out-of-control-72a7e8a0fe0d (paywalled, archive https://archive.ph/0WWoE)

#aicon #aihype #llm