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Microsoft canceling its internal Claude Code licenses this week likely has almost nothing to do with AI costs becoming untenable. Microsoft's own statement says Claude models remain accessible through Copilot CLI and Anthropic's Claude still runs inside Microsoft 365. The real story is that Microsoft's own product (GitHub Copilot)...

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Microsoft just banned its own engineers from using AI. The tool was literally costing MORE than the humans it was supposed to replace. They lied to you about AI adoption and now the whole narrative is blowing up: Microsoft gave thousands of engineers access to Claude Code six months ago and encouraged them to use it. Engineers loved it and adoption exploded. But then the invoices arrived. Token-based pricing means every query, every code review, every debugging session costs money. At scale across 100,000 engineers, the numbers became so large that Microsoft issued an internal order to cancel nearly all Claude Code licenses by end of June and force everyone onto their own cheaper tool instead. The company that invested $5 billion in Anthropic just told its own people to stop using Anthropic's product because it costs too much. Uber's story is even worse... Their CTO Praveen Neppalli Naga told The Information that the budget he planned for the full year was "blown away already" by April. Uber had rolled out Claude Code in December 2025. By March, 84% of their 5,000 engineers were using it with 70% of all committed code coming from AI systems. Heavy users were burning $500 to $2,000 per month each. Naga himself spent $1,200 in a single two-hour demo session. The company had even built internal leaderboards ranking engineers by how much AI they used. They literally gamified the spending and then ran out of money. Now look at what Nvidia's own VP of applied deep learning Bryan Catanzaro said to Axios last month. Direct quote: "For my team, the cost of compute is far beyond the costs of the employees." This is a VP at the company that SELLS the chips saying that using AI is more expensive than paying humans. Think about what this means for the entire AI narrative. Every CEO on every earnings call for the past two years has said the same thing: AI will make us more efficient, reduce headcount, and cut costs. The stock market rewarded every company that said it. Fired workers, stock goes up. Announced AI adoption, stock goes up. But the actual companies deploying AI at scale are discovering the math doesn't work. The MORE employees use AI, the HIGHER the bill. Goldman Sachs forecasts a 24x increase in token consumption by 2030 as companies adopt AI agents. Gartner just published a report showing that even though individual token prices will drop 90% by 2030, total enterprise AI costs will go UP because agents consume exponentially more tokens per task than basic tools. Meta built an internal dashboard called "Claudeonomics" to track which employees use the most AI. Amazon started pushing engineers to "tokenmaxx," their internal term for consuming as many AI tokens as possible. Both companies are spending hundreds of billions on AI infrastructure this year alone. And Microsoft, the company that bet its entire future on AI, just told 100,000 engineers to stop using the tool they liked best because the per-token bills got out of control. The companies building AI are telling investors it saves money. The companies using AI are finding out it costs more than the humans it was supposed to replace. And even the company that makes the chips just admitted it through its own VP. This is the gap nobody on Wall Street is pricing in. $725 billion in AI infrastructure spending this year across Big Tech. And the first companies to actually deploy these tools at scale are already pulling back because the economics don't work. What do you think?
1:33

Microsoft just banned its own engineers from using AI. The tool was literally costing MORE than the humans it was supposed to replace. They lied to you about AI adoption and now the whole narrative is blowing up: Microsoft gave thousands of engineers access to Claude Code six months ago and encouraged them to use it. Engineers loved it and adoption exploded. But then the invoices arrived. Token-based pricing means every query, every code review, every debugging session costs money. At scale across 100,000 engineers, the numbers became so large that Microsoft issued an internal order to cancel nearly all Claude Code licenses by end of June and force everyone onto their own cheaper tool instead. The company that invested $5 billion in Anthropic just told its own people to stop using Anthropic's product because it costs too much. Uber's story is even worse... Their CTO Praveen Neppalli Naga told The Information that the budget he planned for the full year was "blown away already" by April. Uber had rolled out Claude Code in December 2025. By March, 84% of their 5,000 engineers were using it with 70% of all committed code coming from AI systems. Heavy users were burning $500 to $2,000 per month each. Naga himself spent $1,200 in a single two-hour demo session. The company had even built internal leaderboards ranking engineers by how much AI they used. They literally gamified the spending and then ran out of money. Now look at what Nvidia's own VP of applied deep learning Bryan Catanzaro said to Axios last month. Direct quote: "For my team, the cost of compute is far beyond the costs of the employees." This is a VP at the company that SELLS the chips saying that using AI is more expensive than paying humans. Think about what this means for the entire AI narrative. Every CEO on every earnings call for the past two years has said the same thing: AI will make us more efficient, reduce headcount, and cut costs. The stock market rewarded every company that said it. Fired workers, stock goes up. Announced AI adoption, stock goes up. But the actual companies deploying AI at scale are discovering the math doesn't work. The MORE employees use AI, the HIGHER the bill. Goldman Sachs forecasts a 24x increase in token consumption by 2030 as companies adopt AI agents. Gartner just published a report showing that even though individual token prices will drop 90% by 2030, total enterprise AI costs will go UP because agents consume exponentially more tokens per task than basic tools. Meta built an internal dashboard called "Claudeonomics" to track which employees use the most AI. Amazon started pushing engineers to "tokenmaxx," their internal term for consuming as many AI tokens as possible. Both companies are spending hundreds of billions on AI infrastructure this year alone. And Microsoft, the company that bet its entire future on AI, just told 100,000 engineers to stop using the tool they liked best because the per-token bills got out of control. The companies building AI are telling investors it saves money. The companies using AI are finding out it costs more than the humans it was supposed to replace. And even the company that makes the chips just admitted it through its own VP. This is the gap nobody on Wall Street is pricing in. $725 billion in AI infrastructure spending this year across Big Tech. And the first companies to actually deploy these tools at scale are already pulling back because the economics don't work. What do you think?

Ricardo

2,940,397 Aufrufe • vor 21 Tagen

“NVIDIA’s cost per token is the lowest in the world.” — Jensen Huang, Founder & CEO of NVIDIA Token generation cost is a direct result of architecture excellence and extreme co-design, not just compute cost. Lowest cost per token and highest performance per watt are definitive measures of AI economics and the key to unlocking maximum profitability and AI revenue. ➡️
0:49

“NVIDIA’s cost per token is the lowest in the world.” — Jensen Huang, Founder & CEO of NVIDIA Token generation cost is a direct result of architecture excellence and extreme co-design, not just compute cost. Lowest cost per token and highest performance per watt are definitive measures of AI economics and the key to unlocking maximum profitability and AI revenue. ➡️

NVIDIA

88,698 Aufrufe • vor 2 Monaten

AI shouldn’t be controlled by a single company or person, and the reason why most AI tools are "free" is because you are the product. Your data is more valuable to them, than the tool itself. That's why Action Model is different. We use tokens so: • Every AI action has a real cost • That cost is transparent • Value flows back to contributors, not one corporation The token represents a fractional stake in the AI itself; economic rights, governance rights, and participation in its growth. And that’s how you run AI without centralized control.
0:42

AI shouldn’t be controlled by a single company or person, and the reason why most AI tools are "free" is because you are the product. Your data is more valuable to them, than the tool itself. That's why Action Model is different. We use tokens so: • Every AI action has a real cost • That cost is transparent • Value flows back to contributors, not one corporation The token represents a fractional stake in the AI itself; economic rights, governance rights, and participation in its growth. And that’s how you run AI without centralized control.

Action Model

46,840 Aufrufe • vor 4 Monaten

🚨 SAM ALTMAN: "A REDUCTION IN COST OF ABOUT A 1000X" 🤯 Sam Altman revealed the cost to solve a hard reasoning problem has plummeted by 1,000x since the release of o1 just 16 months ago (comparing o1 to the new 5.4 model). How is this possible? Altman credits two main factors: 1️⃣ We're Still in the Early Days: “We are so new to this paradigm that there is massive room for improvement. We're still doing things in "dumb ways" and getting better fast.” 2️⃣ Human Ingenuity is Underrated: “It's not just the models getting better. It's kernel engineers, power engineers, and data center designers finding brilliant ways to optimize every step of the process.” The compounding effect of better models + better human engineering is driving an exponential decrease in the cost of AI reasoning.
1:43

🚨 SAM ALTMAN: "A REDUCTION IN COST OF ABOUT A 1000X" 🤯 Sam Altman revealed the cost to solve a hard reasoning problem has plummeted by 1,000x since the release of o1 just 16 months ago (comparing o1 to the new 5.4 model). How is this possible? Altman credits two main factors: 1️⃣ We're Still in the Early Days: “We are so new to this paradigm that there is massive room for improvement. We're still doing things in "dumb ways" and getting better fast.” 2️⃣ Human Ingenuity is Underrated: “It's not just the models getting better. It's kernel engineers, power engineers, and data center designers finding brilliant ways to optimize every step of the process.” The compounding effect of better models + better human engineering is driving an exponential decrease in the cost of AI reasoning.

Chris

283,092 Aufrufe • vor 3 Monaten

This was done in less than 24h by one person using AI as the ground tooling, some post in AE and that’s it. Imagine the time and cost a real spot like this would cost. 100x less expensive due to AI.
0:48

This was done in less than 24h by one person using AI as the ground tooling, some post in AE and that’s it. Imagine the time and cost a real spot like this would cost. 100x less expensive due to AI.

Linus ✦ Ekenstam

313,177 Aufrufe • vor 1 Jahr

As AI labs race to train and deploy new frontier models, existing models become more affordable with better tokenomics. ✨ "Everybody's trying to get to the next frontier. And every time they get to the next frontier, the last generation AI tokens, the cost starts to decline about a factor of 10x every year," said NVIDIA CEO Jensen Huang in a recent keynote. Model optimization techniques such as speculative decoding and multi-token prediction, combined with inference serving platforms like NVIDIA Dynamo on NVIDIA Blackwell NVL72 systems, enable AI factories to boost throughput by 10x with one-tenth of the cost per token. Learn more about AI factory tokenomics ➡️
0:45

As AI labs race to train and deploy new frontier models, existing models become more affordable with better tokenomics. ✨ "Everybody's trying to get to the next frontier. And every time they get to the next frontier, the last generation AI tokens, the cost starts to decline about a factor of 10x every year," said NVIDIA CEO Jensen Huang in a recent keynote. Model optimization techniques such as speculative decoding and multi-token prediction, combined with inference serving platforms like NVIDIA Dynamo on NVIDIA Blackwell NVL72 systems, enable AI factories to boost throughput by 10x with one-tenth of the cost per token. Learn more about AI factory tokenomics ➡️

NVIDIA AI

16,053 Aufrufe • vor 4 Monaten

Dane Vahey of OpenAI says the cost per million tokens has fallen from $36 to $0.25 in the past 18 months, and as such AI is the greatest cost-depreciating technology ever invented
1:15

Dane Vahey of OpenAI says the cost per million tokens has fallen from $36 to $0.25 in the past 18 months, and as such AI is the greatest cost-depreciating technology ever invented

Tsarathustra

575,382 Aufrufe • vor 1 Jahr

Gavin on how Blackwell and GB300 will end Google's position as the lowest-cost producer of tokens: "I think it's important that Google has been the lowest cost producer of tokens. And this is really important because AI is the first time in my career as a tech investor that being the low cost producer has ever mattered. What Google has been doing as the low cost producer is they have been sucking the economic oxygen out of the AI ecosystem, which is an extremely rational strategy for them -- let's make life really hard for our competitors. We'll see the first models trained on Blackwell in early 2026. I think the first Blackwell model will come from xAI because they build the data centers the fastest. The GB300 is a great chip. It is drop-in compatible in every way with those GB200 racks, and the companies that use the GB300s -- they're going to be the low cost producer of tokens. I think this has pretty profound implications because it has to change Google's strategic calculus. If you have decisive cost advantage, why not AI at a -30% margin. You make it hard for your competitors who need funding to raise the capital that they need. On the other side of that maybe you have an extremely dominant share position. Well, all of that changes once Google is no longer the low-cost producer."
3:33

Gavin on how Blackwell and GB300 will end Google's position as the lowest-cost producer of tokens: "I think it's important that Google has been the lowest cost producer of tokens. And this is really important because AI is the first time in my career as a tech investor that being the low cost producer has ever mattered. What Google has been doing as the low cost producer is they have been sucking the economic oxygen out of the AI ecosystem, which is an extremely rational strategy for them -- let's make life really hard for our competitors. We'll see the first models trained on Blackwell in early 2026. I think the first Blackwell model will come from xAI because they build the data centers the fastest. The GB300 is a great chip. It is drop-in compatible in every way with those GB200 racks, and the companies that use the GB300s -- they're going to be the low cost producer of tokens. I think this has pretty profound implications because it has to change Google's strategic calculus. If you have decisive cost advantage, why not AI at a -30% margin. You make it hard for your competitors who need funding to raise the capital that they need. On the other side of that maybe you have an extremely dominant share position. Well, all of that changes once Google is no longer the low-cost producer."

Patrick OShaughnessy

174,443 Aufrufe • vor 6 Monaten

Scaling performance is only part of the equation. The other half is cost. And what we are seeing right now is an unprecedented collapse in cost at industrial scale. Three years ago, running a million-token output with AI cost about sixty dollars. Today, it costs less than a cent. That is a 99.9 percent drop. In any other sector, that would be called a revolution. When something this powerful becomes that cheap, it is no longer a specialist tool. It becomes a foundational utility. This is the shift from niche capability to industrial infrastructure.
1:00

Scaling performance is only part of the equation. The other half is cost. And what we are seeing right now is an unprecedented collapse in cost at industrial scale. Three years ago, running a million-token output with AI cost about sixty dollars. Today, it costs less than a cent. That is a 99.9 percent drop. In any other sector, that would be called a revolution. When something this powerful becomes that cheap, it is no longer a specialist tool. It becomes a foundational utility. This is the shift from niche capability to industrial infrastructure.

Nina Schick

30,435 Aufrufe • vor 5 Monaten

BREAKING: MICROSOFT JUST ANNOUNCED TO BAN ITS OWN ENGINEERS FROM USING AI DUE TO THE COST OF USING IT. VP OF NVIDIA SAID, “THE COST OF AI FOR MY TEAM WAS MORE THAN HUMANS” “AI CAN COST MORE THAN HUMAN WORKERS NOW”
1:33

BREAKING: MICROSOFT JUST ANNOUNCED TO BAN ITS OWN ENGINEERS FROM USING AI DUE TO THE COST OF USING IT. VP OF NVIDIA SAID, “THE COST OF AI FOR MY TEAM WAS MORE THAN HUMANS” “AI CAN COST MORE THAN HUMAN WORKERS NOW”

Vivek Sen

17,442,358 Aufrufe • vor 21 Tagen

🚨DID MICROSOFT JUST BAN ITS ENGINEERS FROM USING AI? The company that poured $5 billion into Anthropic discovered that Claude Code was costing more than the humans it was supposed to replace — so they’re canceling nearly all licenses by the end of June. Uber’s CTO admitted their full-year AI budget was “blown away” by April. Even Nvidia’s VP of applied deep learning said the cost of compute now exceeds the cost of employees. Is the “AI will save money and cut headcount” narrative falling apart in real time?
1:33

🚨DID MICROSOFT JUST BAN ITS ENGINEERS FROM USING AI? The company that poured $5 billion into Anthropic discovered that Claude Code was costing more than the humans it was supposed to replace — so they’re canceling nearly all licenses by the end of June. Uber’s CTO admitted their full-year AI budget was “blown away” by April. Even Nvidia’s VP of applied deep learning said the cost of compute now exceeds the cost of employees. Is the “AI will save money and cut headcount” narrative falling apart in real time?

NewsForce

19,103 Aufrufe • vor 21 Tagen

🚨 THE AI COST BUBBLE IS GETTING WORSE. Companies pushed employees to “tokenmaxx” and aggressively use AI tools to boost productivity scores, but agentic AI can consume up to 1,000x more tokens than normal AI queries. Now the same companies that hyped AI cost savings are discovering that heavy AI usage is actually exploding operating costs instead of reducing them.
0:22

🚨 THE AI COST BUBBLE IS GETTING WORSE. Companies pushed employees to “tokenmaxx” and aggressively use AI tools to boost productivity scores, but agentic AI can consume up to 1,000x more tokens than normal AI queries. Now the same companies that hyped AI cost savings are discovering that heavy AI usage is actually exploding operating costs instead of reducing them.

Crypto Rover

69,155 Aufrufe • vor 21 Tagen

Every AI product running in production depends on an inference system someone had to engineer, optimize and more. Scheduling, batching, routing, cost per token. This is a craft. The Inference Frontier Program spotlights the builders behind that work. 💡 Watch the video and nominate a team:
1:22

Every AI product running in production depends on an inference system someone had to engineer, optimize and more. Scheduling, batching, routing, cost per token. This is a craft. The Inference Frontier Program spotlights the builders behind that work. 💡 Watch the video and nominate a team:

Nebius

54,224 Aufrufe • vor 3 Monaten

Marc Andreesen on why building companies will become more expensive in the AI Era. There's a notion that AI will help cut down costs and increase efficiency. However, Marc presented a strong counterargument by referencing Jevon's paradox. Jevon's paradox: The Jevon's paradox occurs when technological progress increases the efficiency with which a resource is used (reducing the amount necessary for any one use), but the falling cost of use induces increases in demand enough that resource use is increased, rather than reduced. He gave some eg of Jevon's Paradox: ->Building roads will only lead to more cars & resulting in traffic. ->CGI in hollywood was developed to reduce the cost of film making but people's expectation increased, so cost involved in CGI also increased. ->Coal consumption increased in Industrial Revolution when the coal prices decreased. He says,The paradox here making cost of a given piece of software would be reduced, but the massive surge of demand for more powerful softwares will actually increase the cost of building a software company. Customers will start seeking for more & more powerful features.
2:14

Marc Andreesen on why building companies will become more expensive in the AI Era. There's a notion that AI will help cut down costs and increase efficiency. However, Marc presented a strong counterargument by referencing Jevon's paradox. Jevon's paradox: The Jevon's paradox occurs when technological progress increases the efficiency with which a resource is used (reducing the amount necessary for any one use), but the falling cost of use induces increases in demand enough that resource use is increased, rather than reduced. He gave some eg of Jevon's Paradox: ->Building roads will only lead to more cars & resulting in traffic. ->CGI in hollywood was developed to reduce the cost of film making but people's expectation increased, so cost involved in CGI also increased. ->Coal consumption increased in Industrial Revolution when the coal prices decreased. He says,The paradox here making cost of a given piece of software would be reduced, but the massive surge of demand for more powerful softwares will actually increase the cost of building a software company. Customers will start seeking for more & more powerful features.

Aish

809,779 Aufrufe • vor 2 Jahren

Two data points dropped in the last few months that should terrify every software company that thinks its codebase is a moat. First, one engineer at Cloudflare, working with Claude via AI agents, rebuilt 94% of Next.js, one of the most widely used frontend frameworks on the internet, built over 10 years by a large engineering team in a single week. Total cost was $1,100 in API tokens. The result, called Vinext, is a drop-in replacement that builds production apps up to 4x faster and produces client bundles 57% smaller and customers are already running it in production. Second is Cursor CEO Michael Truell deployed a swarm of hundreds of GPT-5.2 agents that ran uninterrupted for an entire week and built a fully functional web browser from scratch called FastRender. 3 million lines of code, thousands of files and a custom Rust rendering engine with HTML parsing, CSS layout, text shaping, and a custom JavaScript VM. Total cost was roughly $30,000. For context, Google has spent billions of dollars and decades of engineering building Chrome. And the benchmarks say by next year, you will be able to one-shot prompt anything. The moat that software companies spent decades building, the complexity of their codebase, the years it would take a competitor to replicate it, the switching costs that moat assumed humans were the unit of production. AI does not care how long it took you to build it, it only cares how long it takes to rebuild it. And right now, the answer is one week.
1:05

Two data points dropped in the last few months that should terrify every software company that thinks its codebase is a moat. First, one engineer at Cloudflare, working with Claude via AI agents, rebuilt 94% of Next.js, one of the most widely used frontend frameworks on the internet, built over 10 years by a large engineering team in a single week. Total cost was $1,100 in API tokens. The result, called Vinext, is a drop-in replacement that builds production apps up to 4x faster and produces client bundles 57% smaller and customers are already running it in production. Second is Cursor CEO Michael Truell deployed a swarm of hundreds of GPT-5.2 agents that ran uninterrupted for an entire week and built a fully functional web browser from scratch called FastRender. 3 million lines of code, thousands of files and a custom Rust rendering engine with HTML parsing, CSS layout, text shaping, and a custom JavaScript VM. Total cost was roughly $30,000. For context, Google has spent billions of dollars and decades of engineering building Chrome. And the benchmarks say by next year, you will be able to one-shot prompt anything. The moat that software companies spent decades building, the complexity of their codebase, the years it would take a competitor to replicate it, the switching costs that moat assumed humans were the unit of production. AI does not care how long it took you to build it, it only cares how long it takes to rebuild it. And right now, the answer is one week.

Milk Road AI

16,781 Aufrufe • vor 1 Monat

Nvidia just revealed Vera Rubin. Ships H2 2026. The numbers are wild: → 10x more performance per watt vs Blackwell → 10x cheaper inference token cost → 4x fewer GPUs to train the same MoE model Energy was the biggest bottleneck in AI. Nvidia just made it 10x cheaper.
0:27

Nvidia just revealed Vera Rubin. Ships H2 2026. The numbers are wild: → 10x more performance per watt vs Blackwell → 10x cheaper inference token cost → 4x fewer GPUs to train the same MoE model Energy was the biggest bottleneck in AI. Nvidia just made it 10x cheaper.

Min Choi

284,837 Aufrufe • vor 3 Monaten

The first fully AI-generated movie just went viral in Cannes. The film is called Hell Grind. According to reports, it was made using Higgsfield AI in around 14 days, cost about $500,000 and roughly $400,000 of that went to compute. For context, a traditional Hollywood feature can take 1-3 years and cost tens of millions to produce. This one was created by a team of about 15 directors, cinematographers, and editors using AI tools like Higgsfield’s Soul Cinema, Seedance 2.0 and other video models. The craziest part? For just the first 25 minutes, CineD reported they generated 16,181 clips to get 253 final shots. That’s roughly 64 attempts for every shot. Some prompts were reportedly around 3,000 words each, just to get 15 seconds of usable footage. So yes, AI is getting faster. But the real takeaway is not “humans are useless now” It’s actually the opposite The people who understand storytelling, directing, editing, taste and tools are about to get insane leverage.
3:07

The first fully AI-generated movie just went viral in Cannes. The film is called Hell Grind. According to reports, it was made using Higgsfield AI in around 14 days, cost about $500,000 and roughly $400,000 of that went to compute. For context, a traditional Hollywood feature can take 1-3 years and cost tens of millions to produce. This one was created by a team of about 15 directors, cinematographers, and editors using AI tools like Higgsfield’s Soul Cinema, Seedance 2.0 and other video models. The craziest part? For just the first 25 minutes, CineD reported they generated 16,181 clips to get 253 final shots. That’s roughly 64 attempts for every shot. Some prompts were reportedly around 3,000 words each, just to get 15 seconds of usable footage. So yes, AI is getting faster. But the real takeaway is not “humans are useless now” It’s actually the opposite The people who understand storytelling, directing, editing, taste and tools are about to get insane leverage.

Jade 💋

150,883 Aufrufe • vor 17 Tagen

AI is the first technology in history where more customers makes you POORER. Every tech company in history got cheaper as it scaled. More users meant lower costs per user. That's the entire model. That's why Microsoft prints money. That's why Google prints money. That's why Meta prints money. Software has near-zero marginal cost. Build it once. Sell it a billion times. The 100 millionth user costs basically nothing to serve. This is the single most important rule in tech economics. But AI completely broke it. Every single query costs real compute. Every interaction burns real electricity. Every response depreciates real hardware. There is no "build once, sell forever." There is only "burn money every time someone asks a question." And the numbers prove it: OpenAI hit $20 billion in annualized revenue. Losses? $14 billion. For every dollar they earn, they spend $1.69 delivering it. Their losses TRIPLED as their revenue grew. Not because they're bad at business, but simply because the model itself is broken. Anthropic crossed $30 billion in annualized revenue. Still burning billions. Still not profitable. Still raising tens of billions just to keep the lights on. xAI is burning $1 billion every single month. Perplexity spent 164% of its revenue on compute costs from AWS, They literally spent more on running the AI than they made from selling it. This is not how technology is supposed to work. Google once estimated that adding AI to every search query would require 500,000 A100 servers. The cost of answering a single AI query is 10x MORE than a traditional search result. Traditional software: Serving 1 million users costs roughly the same as serving 100,000. The marginal cost is basically zero. AI: Serving 1 million users can cost 10 times what 100,000 costs. Every new user is a new expense. Every new query is a new dollar burned. This is reverse economics. The more successful you become, the faster you die. And nobody in the industry wants to talk about it because the entire narrative depends on you believing AI companies work like software companies. But they don't. They NEVER will. Software scales to infinity. AI scales to bankruptcy. HSBC ran the numbers on OpenAI specifically. Their conclusion: Even after every funding round, every investment, every deal, OpenAI still faces a $207 BILLION shortfall to reach profitability. The industry response has been to raise prices. ChatGPT went from free to $20 to $200 for the Pro plan. And it's still not enough because the cost of running these models grows FASTER than any price increase consumers will accept. Meanwhile 966 AI startups died in 2024. A 25.6% jump from the year before. AI startups burn cash twice as fast as non-AI tech companies. And the ones building on TOP of OpenAI and Anthropic are in even worse shape. Every wrapper app. Every "AI-powered" SaaS tool. Every startup whose entire product is someone else's model with a different skin on it. They're all margin-negative. Every single one. And these are the companies about to IPO. SpaceX, OpenAI, Anthropic, and Cerebras. $240 billion in combined raises planned for 2026. They're asking you to invest in an industry where the fundamental unit economics don't work. Where the MORE customers you get, the MORE money you lose. Where no company has figured out how to make the math positive. The dot-com bubble had the same pitch: "Revenue is growing. Profitability comes later." For most of them, later never came. The question isn't whether AI will change the world. It will. The question is whether it can do it without going broke first. And right now, every single number literally says no. How can they become profitable?
0:26

AI is the first technology in history where more customers makes you POORER. Every tech company in history got cheaper as it scaled. More users meant lower costs per user. That's the entire model. That's why Microsoft prints money. That's why Google prints money. That's why Meta prints money. Software has near-zero marginal cost. Build it once. Sell it a billion times. The 100 millionth user costs basically nothing to serve. This is the single most important rule in tech economics. But AI completely broke it. Every single query costs real compute. Every interaction burns real electricity. Every response depreciates real hardware. There is no "build once, sell forever." There is only "burn money every time someone asks a question." And the numbers prove it: OpenAI hit $20 billion in annualized revenue. Losses? $14 billion. For every dollar they earn, they spend $1.69 delivering it. Their losses TRIPLED as their revenue grew. Not because they're bad at business, but simply because the model itself is broken. Anthropic crossed $30 billion in annualized revenue. Still burning billions. Still not profitable. Still raising tens of billions just to keep the lights on. xAI is burning $1 billion every single month. Perplexity spent 164% of its revenue on compute costs from AWS, They literally spent more on running the AI than they made from selling it. This is not how technology is supposed to work. Google once estimated that adding AI to every search query would require 500,000 A100 servers. The cost of answering a single AI query is 10x MORE than a traditional search result. Traditional software: Serving 1 million users costs roughly the same as serving 100,000. The marginal cost is basically zero. AI: Serving 1 million users can cost 10 times what 100,000 costs. Every new user is a new expense. Every new query is a new dollar burned. This is reverse economics. The more successful you become, the faster you die. And nobody in the industry wants to talk about it because the entire narrative depends on you believing AI companies work like software companies. But they don't. They NEVER will. Software scales to infinity. AI scales to bankruptcy. HSBC ran the numbers on OpenAI specifically. Their conclusion: Even after every funding round, every investment, every deal, OpenAI still faces a $207 BILLION shortfall to reach profitability. The industry response has been to raise prices. ChatGPT went from free to $20 to $200 for the Pro plan. And it's still not enough because the cost of running these models grows FASTER than any price increase consumers will accept. Meanwhile 966 AI startups died in 2024. A 25.6% jump from the year before. AI startups burn cash twice as fast as non-AI tech companies. And the ones building on TOP of OpenAI and Anthropic are in even worse shape. Every wrapper app. Every "AI-powered" SaaS tool. Every startup whose entire product is someone else's model with a different skin on it. They're all margin-negative. Every single one. And these are the companies about to IPO. SpaceX, OpenAI, Anthropic, and Cerebras. $240 billion in combined raises planned for 2026. They're asking you to invest in an industry where the fundamental unit economics don't work. Where the MORE customers you get, the MORE money you lose. Where no company has figured out how to make the math positive. The dot-com bubble had the same pitch: "Revenue is growing. Profitability comes later." For most of them, later never came. The question isn't whether AI will change the world. It will. The question is whether it can do it without going broke first. And right now, every single number literally says no. How can they become profitable?

Ricardo

166,945 Aufrufe • vor 1 Monat

KEVIN WARSH'S TAKE ON AI: “AI IS GOING TO MAKE ALMOST EVERYTHING COST LESS. WE’RE AT THE FRONT END OF A PRODUCTIVITY BOOM. ECONOMIC GROWTH WON’T BE INFLATIONARY, WE’RE IN THE EARLY INNINGS OF A STRUCTURAL DECLINE IN PRICES.”
0:46

KEVIN WARSH'S TAKE ON AI: “AI IS GOING TO MAKE ALMOST EVERYTHING COST LESS. WE’RE AT THE FRONT END OF A PRODUCTIVITY BOOM. ECONOMIC GROWTH WON’T BE INFLATIONARY, WE’RE IN THE EARLY INNINGS OF A STRUCTURAL DECLINE IN PRICES.”

Vivek Sen

40,275 Aufrufe • vor 12 Tagen

Grok Code just literally cloned the entire Netflix UI with a one shot prompt From the iconic Hero section to the interactive Carousel, all with a single prompt and a few web-sourced image links It’s not just fast, it's the most cost-effective SOTA model out there ➝ Input: Grok $0.20 vs Claude $3 (15x cheaper) ➝ Output: Grok $1.50 vs Claude $15 (10x cheaper) Here’s how you can do it in VS Code with Kilo Code Grok Code matches Claude Sonnet 4 in performance, but is 10-15x more cost-effective All this for less than $1 SOTA power, fractional cost
1:23

Grok Code just literally cloned the entire Netflix UI with a one shot prompt From the iconic Hero section to the interactive Carousel, all with a single prompt and a few web-sourced image links It’s not just fast, it's the most cost-effective SOTA model out there ➝ Input: Grok $0.20 vs Claude $3 (15x cheaper) ➝ Output: Grok $1.50 vs Claude $15 (10x cheaper) Here’s how you can do it in VS Code with Kilo Code Grok Code matches Claude Sonnet 4 in performance, but is 10-15x more cost-effective All this for less than $1 SOTA power, fractional cost

X Freeze

6,972,815 Aufrufe • vor 9 Monaten