this post was submitted on 04 Jun 2026
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[–] qaz@lemmy.world 27 points 7 hours ago (1 children)

Everyone could've seen it coming from mile away

[–] nbsp@programming.dev 12 points 7 hours ago

anyone who didnt is a fucking idiot

[–] Trilogy3452@lemmy.world 15 points 7 hours ago

I think this is "stupid money', again.

I hope this makes companies stop being "AI native"

[–] replicat@lemmy.world 25 points 10 hours ago (1 children)

I've been using it for well over a year now.

Hit my limit in 1 day and canceled.

[–] Ohi@lemmy.world 4 points 8 hours ago (1 children)

Yup, same. x57 for GPT 5.5 now?! The GitHub agent architecture was hot as hell and allowed me to work on projects without ever bootstrapping it locally, but there is no way I'm gonna get sucked into spending hundreds a month. It felt good seeing that $250 refund come through for my yearly plan. I'll take those funds to Claude or Codex directly. Throttled usage is way better than being fucked over by a glorified reseller.

[–] darkangelazuarl@lemmy.world 4 points 1 hour ago

Lol, all AI is shifting to this model. Those other companies will bait and switch too just a matter of time.

[–] pHr34kY@lemmy.world 81 points 13 hours ago (2 children)

It wasn't profitable. This bait and switch was a long time coming.

[–] Clutter@sh.itjust.works 10 points 7 hours ago

In just glad it happened relatively soon. Should have happened sooner :-)

[–] mic_check_one_two@lemmy.dbzer0.com 43 points 12 hours ago (1 children)

Yup, the “first one is free” deal is always a trap.

[–] SCmSTR@lemmy.blahaj.zone 5 points 7 hours ago* (last edited 7 hours ago)

Literal drug dealer strategy

[–] nbsp@programming.dev 3 points 7 hours ago (1 children)

microsoft cant win a token pricing war.

comrades, time to jump on the deepseek bandwagon :D

[–] Blackmist@feddit.uk 2 points 3 hours ago (4 children)

I don't understand why they're building all this infrastructure in the USA.

Surely this is one of the most expensive places in the world to build, staff, maintain, and power a large AI data centre?

[–] jaemo@sh.itjust.works 1 points 1 hour ago

It must be due to the groundswell of grass roots support from the local communities where they're trying to build them. I hear simply everyone wants one in their neighborhood, because it was just too peaceful, quiet and power was so cheap, the electric was literally leaking out of the outlets and staining the rugs.

[–] jj4211@lemmy.world 2 points 2 hours ago

The USA has great data infrastructure and comparitively cheap power compared to anywhere else that has a vaguely credible grid.

Staff barely matters, the handful of folks they need is a rounding error in the scheme of things.

Real estate in rural America is pretty cheap too. Since they don't care about proximity to anything day to day, they just need to make sure there's credible access to power, data, and water.

Meanwhile, they have a government that varies through different degrees of support and pretty much never wavering toward the side of making life difficult so long as they stay at home, but will make things more complicated.

If they did build somewhere that was cheaper, it would be unreliable for their customer base due to network connectivity, and they'd probably have a problem keeping their datacenter suitably powered, and some the US would get pissy about exporting that much compute.

[–] ExLisper@lemmy.curiana.net 2 points 3 hours ago
  1. Announce plans to build shitload of datacenters
  2. Sign deal with NVIDIA to buy chips for those centers
  3. NVIDIA's stock goes up. NVIDIA invest profits in AI companies
  4. AI companies use this money to offer tokens below market price
  5. AI companies say usage is up so they will need more datacenters
  6. Repeat until everything explodes
  7. Profit
[–] Ithral@lemmy.blahaj.zone 1 points 3 hours ago

Because other countries actually have environmental refulations with teeth. Though i do recall a company wanted to build a huge data center in Kenya https://www.techradar.com/pro/microsofts-usd1-billion-kenya-ai-data-center-project-hits-a-major-hurdle-as-the-government-says-it-would-require-switching-off-half-the-country-to-meet-power-needs

[–] bigbangdangler@reddthat.com 81 points 16 hours ago (1 children)

Sigh. None of this is surprising in the least. The cost of AI infrastructure and compute (coupled with the complexity of the chain) makes it prohibitively expensive.

It only has appeared cheap because of investor money flowing like Niagara on the off-chance that it could be made cheap enough to be profitable after getting everyone addicted to using it. I really don't think it's there, and it's definitely not cheap enough to continue flying for free much longer.

[–] BassTurd@lemmy.world 20 points 15 hours ago (1 children)

There will be some major bag holders soon. Who's is gonna be? The funnelers or the funnelees? How does MS bounce back having integrated copilot into everything?

[–] MalReynolds@slrpnk.net 44 points 14 hours ago* (last edited 14 hours ago) (3 children)

Given the recent NASDAQ changes, looks like US pension funds will end up with the bag. What a scam.

Microslop can suck it.

[–] HaraldvonBlauzahn@feddit.org 3 points 7 hours ago

As in the 2008 saying: "All that money has not really disappeared. It is just in the pockets of different people".

[–] BNE@lemmy.blahaj.zone 12 points 12 hours ago (2 children)

So a massive wealth transfer - right after Covid, ANOTHER unprecedented wealth transfer.

Side question: when are you people in the imperial core going to do something about this with all that God given Liberty™ and Freedom® you continually bomb and destabilize the rest of us for?

[–] BassTurd@lemmy.world 12 points 11 hours ago (1 children)

We got ourselves a keyboard warrior here.

[–] BNE@lemmy.blahaj.zone 2 points 4 hours ago

A stunningly generic defensive sledge from user BassTurd, I guess.

[–] MalReynolds@slrpnk.net 8 points 11 hours ago

Shakes Magic 8 Ball: Signs point to never.

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[–] BrianTheeBiscuiteer@lemmy.world 25 points 14 hours ago (1 children)

Not me. As soon as my boss said, "Use the tool thoughtfully," I pretty much don't use it at all anymore.

[–] JcbAzPx@lemmy.world 30 points 14 hours ago

The most thoughtful way to use it.

[–] GreenKnight23@lemmy.world 24 points 14 hours ago (1 children)
[–] rekabis@lemmy.ca 14 points 12 hours ago

My reaction, exactly.

Would love to be a fly on the boardroom wall of any one of those companies which did massive layoffs “because AI”. Probably lowkey panicking on how to get their devs back.

[–] ryantown@lemmy.world 153 points 19 hours ago (2 children)

Yeah, what's the surprise here? Turns out it's expensive.

[–] artyom@piefed.social 10 points 11 hours ago

The surprise is that they're not continuing to throw VC money at it to bolster user numbers and mislead investors.

[–] paraphrand@lemmy.world 68 points 19 hours ago (10 children)

Microsoft was deceptive here and never made it clear exactly what sort of deal you were getting with the flat rate. There was no indication of the actual magnitude.

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[–] mech@feddit.org 42 points 16 hours ago

I have pro+ and I filed an FTC complaint when the billing change was announced and encouraged others to do the same, with the hope that it may lead to a class action settlement in the future.

Good luck, buddy!

[–] teft@piefed.social 97 points 19 hours ago (9 children)

Man, enshittification is happening so fast for ai. Imagine the next big thing. It'll be enshittified prior to release.

[–] nieceandtows@programming.dev 1 points 4 hours ago

Basically what happened with Claude Opus 4.8

[–] porous_grey_matter@lemmy.ml 50 points 17 hours ago (9 children)

This isn't enshittification in the traditional sense, they haven't captured the market enough for that. They're just panicking because they're burning cash way too fast.

[–] Jakeroxs@sh.itjust.works -1 points 1 hour ago (1 children)

"They're burning cash too fast"

Their most recent earnings was 82.9B just last quarter, you don't know what you're talking about.

[–] porous_grey_matter@lemmy.ml 2 points 37 minutes ago

Ah yes. Of course, all of Microsoft just exists to subsidize GitHub AI tool usage.

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[–] zurohki@aussie.zone 16 points 14 hours ago (1 children)

Meta kind of did that with their VR stuff. They skipped the appealing to users part and build a bland, brand-safe, microtransaction-laden experience to sell to businesses assuming they could just use their size to force users to buy it.

[–] JackbyDev@programming.dev 6 points 9 hours ago

I think that's because Meta acquiring Oculus was the enshitfication.

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