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even for businesses that do nothing with AI, they're paying more for electricity and other utilities.

A history book about the tech industry will be like "they rejected his message."

You were always right

Or they resort to ad hominem against you personally. I am open to being convinced either way but I'm just not seeing the other side on the economic and profitability aspect.

Like saying Thanks churns out a few hundred tokens. I wouldn't be surprised if millions of tokens are used in businesses just for niceties like that. Definitely making sure I'm keeping my skills honed in other ways.

They were all sold on the idea that if they just invest enough to get the Plagiarism Machine started, THEY would be on the ground floor of the next Microsoft or Facebook - utilities that society revolve around. It's not happening, they're realizing that, and they can't handle it.

In most cases it's not even a new product. They turned everything into a subscription for software and they spent all this money, jammed a bunch of AI no one asked for into it all for the same price or at best added an AI tier no one's buying. All this money spent with literally no plan to profit.

Petition to buy Ed a T-shirt which reads “I FUCKING CALLED IT” that he can wear next time he’s on Bloomberg

These businesses effectively fell for multiple introductory offers from very shady credit card companies. Yeah it's fun to throw money around and experiment when someone else is footing the bill, but now the grace period's over and the contract looks very unfair all of a sudden.

“CFOs used to paying flat costs for technology” … have never seen a cloud services bill?

Seems like it was the plan all along. AI companies hoped to get them hooked, in one way or other, before actually ratcheting up costs. Imagine being an HR manager in the middle of an AI-based implementation. You're now asking whether you're in too deep to turn around & that's the whole point

Don’t worry—they’ll find costs more predictable and easier to model when we put them on a spaceship to Mars with a bevy of billionaires.

One option is to not pay for something that completely stupid to begin with, I’d say.

This is totally the type of model that a CFO should let their company embrace and figure out instead of throw directly into the garbage.

Yeah, when cloud came along the math was relatively easy because you could count the servers you didn't have to buy and the datacenters you could sell. The cost savings here are opaque and may be negative.

They really found that “first hit is free, addicts all come back” funding model and perfected it If it hadn’t already decimated the software industry, I’d be slightly impressed at the corporate swindle, frankly

The Summer of Smiles

"Your-substitute-brain-as-a-service with monthly subscription fees" sounds way less sexy than "AI will turn the world into paradise", but yes that is reality now that the providers need to show positive cash flow.

Now governments are going to step in to bail out the industryyyy yaaaay!

Does "costs more unpredictable and harder to model" imply 2 more years of spend or 3-6 months abd then give up? Waiting for the "AI has gone the way of the Metaverse" headline.

Bossbros had precisely zero qualms about firing thousands of workers en masse and culling workplace safety measures. It only started to hurt when their flat rate entitlement got bruised. Let them stew.

"creating new challenges" is the gockless business way of saying "our CEO won't be able to play golf on the moon in ten years and it's all your fault."

It does feel like after you're Bloomberg appearance the flood gates of "Oh shit" finally bubbled to the surface. Friday's markets were a reflection of that. More to come. SpaceX S1 was also an "oh shit" moment. Now it's a race to the exits. Waiting on you're next 💣 to drop. 😉

a number of industries have tried to push usage based models and they have always rejected them because it's impossible to forward budget, especially so in the initial period. they just refuse to do it. and it does favour the vendor

it‘s not unusual to be moved into pay per use for customers with high usage and high willingness to pay. You are sure you are interpreting this correctly? It is a strategy you use in SaaS pricing when you have customers who are willing to pay premium ;)

Sucks to suck. Guess they shouldn't have gotten rid of the humans ;)

2024: stop being such a jerkfuckwadface about this 2026: this is just a new challenge and they will figure it out 2028: ???

There was no way you could have known. Also you should’ve used the quantum models. Also, more seriously, the negative ROI for almost everything out there is nothing next to pricing in the catastrophic bad decisions enabled, which is nothing next to pricing in the violence egged on by these models

I’m so excited to see the garbage ai bubble collapse

aging like a fine wine, Ed.🍷 i'm getting '79 silver oak.

made to pay the real costs"? nah, they’ll just find a way to pass it on to consumers. businesses always flinch, but they also know how to keep the profits flowing. you think this time will be different? that's a whole lotta wishful thinking right there.

Businesses will flinch”? More like they’ll just pass the costs to consumers and keep the profits. You really think they’ll actually absorb that hit? Nah, they’re way too comfortable with their margins to care.

look, so businesses are flinching now huh? kinda interesting they only get it when profits start dropping. what happened to being "innovative"? 97% of firms still aren’t AI-ready...

look, businesses are flinching because of costs? nah, they’ll just pass it onto consumers. welcome to capitalism 101. what’s your exit strategy when they start raising prices?

It's like we were right this whole damn time.

"funny how when the first taste is free and the dealer turns up the price, the fiends start complaining" - Stringer Bell, probably

A regular Galileo, aren’t you.