this post was submitted on 08 Feb 2026
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[–] kescusay@lemmy.world 132 points 1 month ago (6 children)

The AI boom

They misspelled "bubble." None of the AI providers have a path towards profitability.

[–] greyscale@lemmy.sdf.org 49 points 1 month ago

None of the AI providers have customers. They're all selling to OpenAI.

[–] Deconceptualist@leminal.space 22 points 1 month ago (1 children)

I assume they'll do the same as the auto industry and banks and get huge government bailouts once investors start demanding returns. That way all us taxpayers can make sure the scammers at the top don't have to spend one second worrying about giving up their lavish lifestyles.

[–] TexasDrunk@lemmy.world 13 points 1 month ago

I mean we're (we as in local taxpayers, not me personally in this case) already paying for the infrastructure they use in increased bills. We're paying for their tax holidays while they're talking about all the new jobs they'll bring (lots of short term construction, 25-50 long term employees once the tax holiday runs out, so very little money in the local economy). We (all of us) are paying the price for the mothballed coal plants that are coming back online to support them. We are paying for federal government contracts on them.

It's corporate welfare all the way down.

[–] axh@lemmy.world 14 points 1 month ago* (last edited 1 month ago)

Profitability went out of fashion. Control and power is the new trend. Big tech controls 95% (if not more) of all information sources. Even if they don't own newspapers, they can make them more or less visible at will. Google tried to monetize it with ads everywhere but that is the old way of thinking.

Cambridge analytica showed that by controlling the information, you can select who makes the laws.

Musk bought Twitter without any chance for a reasonable return on investment. Guess why?

The "old tech" (Google, Facebook, Twitter, TikTok) controls what you know. But AI goes a step further. It controls what you think about things. It can explain why, what you thought was outrageous, is perfectly normal, or vice versa. It's your own personalised propaganda machine. Once enough people are hooked and get used to using AI, the enshitification phase will begin and the AI will become more and more opinionated. And most people won't notice... Some will, but they don't need to influence everyone.

[–] ChicoSuave@lemmy.world 4 points 1 month ago (1 children)

Classic capitalist trap. AI is a service that was never meant to be profitable. AI is bringing tech bros into socialism.

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[–] Grandwolf319@sh.itjust.works 3 points 1 month ago (1 children)

While I agree with you, is there anyway to know how much an average prompt (let’s say a coding question that used to be a quick google search) costs?

I really want to ask people, would you pay X per prompt?

Cause most people “love” AI cause it costs very little

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[–] rc__buggy@sh.itjust.works 91 points 1 month ago (3 children)

Uhhh.... I won't comment on the other stuff but I can confidently say the electrician that comes to your house is not the electrician who is wiring these data centers. Completely different crews.

[–] cannedtuna@lemmy.world 28 points 1 month ago* (last edited 1 month ago) (4 children)

Well yeah, it’s right there in the first sentence

Electricians are getting harder to find, and some construction projects are on hold.

They’re talking about commercial electricians. Because of all these data centers being built electricians are being moved around because of the money being thrown at these projects. For example, Dallas has been a hub for tech sector projects for a while; because of all the new data centers being built in Texas there are out of state electricians coming in for these projects from neighboring states like OK. Funny tho, now that Oklahoma is starting its own data center boom, now electricians from OK would just rather stay there which is causing projects in TX to stall.

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[–] mynona@lemmy.world 18 points 1 month ago (1 children)

It's also weird to single out electricians when it's the construction companies themselves that are being dragged across the globe to the few places that will auto stamp new data centers. There's a private compound in the Western US that doesn't allow reporters and is blowing millions to bring workers in from thousand of miles away. Rumor is local crews weren't considered because they'd be more likely to report environmental concerns in their own backyard.

[–] rc__buggy@sh.itjust.works 6 points 1 month ago (1 children)

Huh, where's that?

Last data center I was on outside Cheyenne, WY there were about 100 iron workers from Texas doing their thing.

[–] mynona@lemmy.world 8 points 1 month ago

Fernley, details these days are hard to find since the tech companies started moving in.

https://www.nevadaappeal.com/news/2019/jul/12/45-million-industrial-sale-closes-in-fernley-secon/

[–] SkyNTP@lemmy.ml 10 points 1 month ago* (last edited 1 month ago) (7 children)

While you are not wrong about these different specialities within the trade, there can still be an effect. Let me illustrate:

Suppose you like bananas but not apples. One day there is an apple disease that kills most of the apple trees leading to a collapse of the apple market. You feel relieved because you don't eat bananas anyways. But you go to the supermarket and find that not only are the apple shelves empty, the banana shelves are empty too! Why? Well people still gotta eat, and not everyone is as picky as you, they switched to bananas and now the banana market is under supplied too. And it's not like you can build a banana farm overnight.

Back to electricians, if the salaries of data center electricians increases rapidly, you will find that those electricians who are qualified for both (even if it is just a very small number) might focus on data centres, straining the supply of residential electricians. Just like with banana orchards, it takes time for new electricians to enter the market, and those new hires will further be swayed to the data center specialty first, further straining the residential market.

We can see a real example of this with the price of RAM. RAM manufacturers saw increased demand for data centre RAM so they switched focus to that market and it ended up drying out the consumer side supply, hence the surge in price. And just as with banana plantations and electricians, you can't start up a RAM fab overnight.

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[–] Sunflier@lemmy.world 65 points 1 month ago* (last edited 1 month ago) (2 children)

Imagine how improved things would be if that $700 billion was spent improving the lives of regular people. Or, what if it was just used to pay the debt through taxes? Medicare for all? They clearly had the money and sqandered it.

[–] vodka@feddit.org 37 points 1 month ago (3 children)

Surely it'll trickle down this time?

[–] Sunflier@lemmy.world 15 points 1 month ago* (last edited 1 month ago)

Any second now. Maybe just one more tax cut for the rich just to be safe.

/s

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[–] WanderingThoughts@europe.pub 17 points 1 month ago* (last edited 1 month ago) (1 children)

Meanwhile they can't figure out why not enough ~~consumers~~ ~~wage slaves~~ children are born

[–] Sunflier@lemmy.world 11 points 1 month ago (5 children)

Don't worry. They'll "solve" the problem with abortion bans.

[–] ivanafterall@lemmy.world 11 points 1 month ago (1 children)

And rolling back things like marital rape laws. And perhaps we were a little hasty allowing women to have their own checking accounts (IN 1974). Etc...

[–] Sunflier@lemmy.world 4 points 1 month ago

Don't even get them started on the right to vote.

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[–] lath@lemmy.world 34 points 1 month ago (8 children)

Anyone remember which country had an inflation so bad, it issued trillion dollar bills useful only as toilet paper?

[–] Nioxic@lemmy.dbzer0.com 15 points 1 month ago

One sec, let me ask an AI about that

[–] nanlux_user@lemmy.world 7 points 1 month ago

IIRC it was Zimbabwe?

[–] jellyfishhunter@lemmy.world 7 points 1 month ago (1 children)

Hyperinflation in Germany after WW1? But I think there must be more examples.

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[–] richieadler@lemmy.myserv.one 4 points 1 month ago

They hadn't mastered the Argentinian custom of changing currency to remove zeros.

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[–] rogsson@piefed.social 31 points 1 month ago

Just crash and burn already… Idiot timeline

[–] Tinks@lemmy.world 24 points 1 month ago (1 children)

I work in procurement and the last week and a half at work has been hell. Buying anything that contains RAM, Hard drives or GPUs right now is a circus. Pricing changing after orders placed, 6+ month lead times, insanely expensive pricing and any other problem you can imagine. It's not just a problem for consumers, but businesses that need hardware refreshes, startups that are trying to launch, and replacements for defective units are all just really hard to get right now. I know this will pass eventually, but it's a tough time to be in procurement for IT hardware.

[–] wavebeam@lemmy.world 5 points 1 month ago (1 children)

I work for an OEM and the sales dudes have been getting reamed by our customers because they’ve had to deliver this news to folks like you. Sucks all around.

[–] itistime@infosec.pub 5 points 1 month ago (1 children)

I bet those sales douches are happy with the bonuses they will get.

I don’t like sales dudes.

[–] wavebeam@lemmy.world 4 points 1 month ago

We’re not really raising prices above costs, in fact we’re eating a lot of the cost increases ourselves to flatten the overall increase across the board that ends up with our customers. But a lot of them already made commitments to buy that we have to raise the price on through no fault of our own. And more are coming. So I don’t think the sales dudes are seeing any benefit tbh. Though you’re right to not like them.

[–] axh@lemmy.world 19 points 1 month ago (2 children)

Don't worry, it makes your life a little bit harder now, but it is worth it, because if everything goes well, your employer will save a lot of money by firing you. Yes you will lose your source of income, but ChatGPT will help you by providing tips on how to survive as a homeless person!

Totally worth it.

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[–] shirro@aussie.zone 17 points 1 month ago* (last edited 1 month ago) (1 children)

Massive opportunity cost. People will say that could have been spent on social programs and I agree but realistically that can't happen until voters stop being manipulated sheeple and wake the fuck up. Which in the USA is never. Brainwashed and neutered.

Until then that capital could have been invested in other industries, creating sustainable jobs and long term economic growth. But it is tied up in a bubble and a huge amount of wealth will be destroyed, invested in rapidly depreciating equipment and data centres that have no prospect of returning their investment.

If you thought it was hard to source computer parts at reasonable prices, imagine what the capital market must be like for anyone but the AI con artists. So when AI tanks, everything else is in limp mode, so the economy will be doubly fucked.

[–] BartyDeCanter@lemmy.sdf.org 4 points 1 month ago

This is called Dutch Disease and most often happens with natural resources, but also with natural stupidity.

[–] Grandwolf319@sh.itjust.works 13 points 1 month ago* (last edited 1 month ago) (4 children)

But critics worry that the up-front costs to develop AI have become so mammoth that the investment can possibly pay off only if AI reshapes life, work and the economy in a way that uncorks massive new profits for these technology firms.

So this is why I don’t think it would pay off:

Haven’t they already shoved AI in every aspect of our lives? I’ve literally seen tooth brushes with AI.

Putting aside how much normal people hate AI, if you already have integrated it everywhere, how can you grow further?

Seriously, we’ve already hit critical mass and now some people actively avoid it, even if you force them, how would the AI revolution look any different than what we have today?

[–] vrek@programming.dev 4 points 1 month ago

I've said it in other similar articles, it depends on your definition of "Ai". Marketing is insisting on "powered by Ai" on all sorts of products but that doesn't mean llm. Some "Ai" may be useful, like the old on-star system on some cars. They had multiple inputs to determine if a crash occurred and alert emergency services if it did... Could be classified as Ai.

Your toothbrush example could be useful, if just finished cleaning cycle and battery level below 20% and not on charger, emit a beep to alert user to charge tooth brush. More advanced, and I doubt these are the case but would be cool and useful. If the could detect blood during a cleaning cycle, alert user to contact a dentist for possible gum disease. Or detection of a new/growing hole in a tooth based on the defection of the bristles and alert user to see a dentist for possible cavity.

Without a solid definition of "Ai" this is all marketing talk. Basically all "Ai" takes multiple inputs and then generates an output based on those inputs. If you say it must generate it based on a llm, then what about the image generating ai? If you say it must have natural language as in an input most of these "Ai" products don't qualify unless they expect you to say "ok, sonic care end cleaning cycle" with a mouth full of toothpaste and water. Technically an argument could be made that a check engine light on a car is "powered by Ai".

The only definition which goes against this and I would agree to is a system where given an identical set of inputs the output is not always(or ever) the same. If that's the case then I am going to start making "Ai" powered lava lamps...

[–] reksas@sopuli.xyz 4 points 1 month ago (4 children)

i think the plan is to first shove it everywhere, have everyone use and rely on it and eventually become dependent. Then they start tightening the screws while using it to influence people too.

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[–] khannie@lemmy.world 13 points 1 month ago

I feel like tulips are the next big thing.

[–] verdi@tarte.nuage-libre.fr 12 points 1 month ago* (last edited 1 month ago)

Shoukd I start selling tulip seeds?

[–] Mwa@thelemmy.club 12 points 1 month ago* (last edited 1 month ago)

just burst already please rahhhhhhhhhhhhhhhhhhhhhhhhh

[–] Paranoidfactoid@lemmy.world 8 points 1 month ago* (last edited 1 month ago) (1 children)

Can confirm: There's a lot of money in machine room planning, setup, and building-out right now. If you have experience with electrical, cooling (water or forced air), cabling, and rackmount machine installation and sysadmin stuff, you'll make good money.

Also: When this shit crashes (and it will), used memory and GPUs will flood the market for cheap. Then it'll be time to buy. Lol

[–] shirro@aussie.zone 5 points 1 month ago (1 children)

I think a lot of gear will be server/AI specific and won't run in peoples home computers. GPUs with no graphics driver support, no video output etc. Some memory finding itself into HBM modules instead of DDR5. I wouldn't be surprised if they have an agreement with the semiconductor cartels to crush it all so it doesn't land in the consumer market.

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[–] Taleya@aussie.zone 5 points 1 month ago

Dot com mk II

Waah but this time it's BiLlIoNs!! Yeah scales slide as the world inflates.

[–] phillycodehound@lemmy.world 4 points 1 month ago (2 children)

Man, good thing phones are really good and can be held onto for a while. Not getting all crappy after a year.

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[–] chunes@lemmy.world 4 points 1 month ago (1 children)

I have an idea about how to solve it. How about google only gives ai answers to people who specifically ask for one

[–] NewNewAugustEast@lemmy.zip 4 points 1 month ago

I quit using Google a long time ago. It's answers weren't good enough before AI.

[–] sommerset@thelemmy.club 4 points 1 month ago (1 children)

Wait why would I not find electrician?

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