On the other side of the deal, OpenAI will have to pay about $60 billion per year to fit the bill for the agreement. It currently generates about $10 billion in revenue, which, statistically speaking, is less than $60 billion.
ok.
I’ll just offer some facts as a counterpoint to the prevailing narrative here.
My employer, a major multinational tech company, is pushing AI use internally so hard it hurts. After studying it they announced it was saving our software engineers about 4 hours a week net, or half a day. Thats as of now with adoption still growing and new tools being explored constantly. Half a day weekly is 10% of our software engineering budget which is a large number, and the company will without a doubt pay a significant sum to continue getting that benefit to get more out of their staff, who are their biggest cost of doing business.
I live in the dissonance between, on the one hand, the narrative in places like Lemmy that AI is shit and doesn’t do anything right and these companies have no monetization plan, and on the other hand, seeing it dramatically change my enterprise workplace and provide real value.
Yes engineers are confirming to my very own ears that they are using AI tools and they have their uses and save them time and toil. For example, we had one version update to push through hundreds of teams all with disparate front end code, and it was not possible to just script the update for them all because custom integration work would always be needed, but we did come up with a prompt that could use a set of documentation and entity mappings to accomplish the update in under a minute with a high rate of success. This is just how things are staring to get done. It hasn’t replaced engineers, but it is fast becoming one of their most powerful tools.
reads title of article
Verbally said “god I hope so.”Then I read the article, and now I’m just thinking I hope it all burns immediately. I want to see the data center fires from my house.
Have you seen this?
I’m at work right now but holy @#%^ that’s one hell of a title. I’ll be sure to check it out when I can.
The company’s development and expansion of its services will rely in no small part on massive data center projects, which will require the same amount of energy to operate as New York City and San Diego combined—energy that currently isn’t even available.
In that case, there is a little but fundamental problem. It is based on basic physics: You can fake securities or earnings, or you can print money. But you can’t fake energy because that violates the laws of physics.
What if we turned off all the poor people’s power nation-wide, would that be enough?
Are brown shoes like a fashion thing among these people, kind strange that in the photo they all have brown shoes
The powerbrokers have gotten into fashion trends, they absolutely do shit like this.
For those of you cheering for the AI bubble to pop…
AI investments now accounts for about 40% of the United States’ GDP growth in 2025, and AI companies are responsible for 80% of growth in American stocks.
…are you not scared shitless?
This is not the dotcom bust, and it’s far fucking worse than the 2008 housing crisis. And to think when I was young the Savings and Loan crisis was a big deal. We’re on the edge of Great Depression 2.0.
The best thing about this shit show is el spastico’s trade war having readied other countries for hard times and pushed them to diversify and make new trade deals. The US deserves its suffering completely, and now they will drag the world down less when they shit the bed.
I think you should only be scared if you own AI stocks and I would guess not a whole lot of common people can even afford to invest in stock. Let those rich idiots lose their money. Maybe they will learn a lesson
It would be interesting to know how many resources this growth has taken from others places…
As for now it don’t seems that AI has generated a profit for the companies that bring it to the market and it seems it will not do it even in the near future, so I assume the question is: how many years can your economy be sustained by a sector that is not generating any revenue and is absorbing a monstrous amount of resources ?
We are not talking about a single company (like Amazon back at the time), do you really think that even when Ai will start (if ever) to generate profits these will be able to repay all the investements done today ?
do you really think that even when Ai will start (if ever) to generate profits these will be able to repay all the investements done today
First, actual investments that have been done are relatively modest. It’s still a substantial portion of TSMC fab capacity. All of the deal announcements for datacenters are 50x-100x growth. I doubt all of this capacity will be built for a long time. Coding/reasoning models can have more demand, but openAI (most of the deal announcements) is not that good at those. 100x power growth is also 200x every 2 years token output growth, and if models get better, users need less tokens by getting it right on fewer tries.
Second, they are losing money at current levels. Oracle leaked it lost $100m on existing AI datacenter operating losses. Coreweave is fully levered at 10% interest rates. Everyone is operating like social media startups from 10-20 years ago. Only revenue growth and market share, and being cool, matters. Enshittification will come much later.
Third, datacenters are fundamentally flawed, and local AI has competitive advantage to them. AI is good at datamining the datacenter traffic for output that could be profitable to steal.
Fourth, the only business model is US military and disinformation control. They will pay infinitity, and support infinity investment. Giant datacenters are about Skynet. Not market profits. That US government would protect their oligarch partners in stealing your ideas/llm outputs, and amplify current media’s messaging that anti-genocide views are treasonous anti-American sentiment.
how many resources this growth has taken from others places…
If all the money goes towards skynet, energy bills for everyone else will go up, including what little manufacturers there are in US. Insisting on war on China and Russia is helped by forced unemployment, and fascist response to the unemployed’s uppityness. Datacenter AI’s primary certain value is as a new cold war Arms and disinformation race.
FWIW, part of the OpenAI investment process is signing something to say that you understand that you’re unlikely to get any return on your investment and that you consider it more akin to a donation
I would think that this warning, in a way or another, is true in every kind of investment, even my bank’s personal investment have something like it.
Not framed like that. You have to acknowledge that investments can depreciate rather than appreciate and that you may lose your money, sure. That’s very different to saying that you acknowledge that you probably will lose your money and that you consider your investment a donation.
I think that this is just a technical difference based on what you are investing into.
A personal bank’s investement is a different thing than a investement in a startup, with different level of risks and revenue.VCs typically want a return on their investments
With a bank investement I get something back, even if less than what I invested. Could OpenAI pay back even half of what received ?
Which send us back to the starting point: what will happen when the VCs will start to ask for their money back or for their share of the revenue ? Inevitably the bubble will pop.
…are you not scared shitless?
the longer the bubble keeps going, the worse it will be… those of us convinced this is already a massive bubble believe the best time for it to pop was yesterday, the next best time is right now
Yea, the best thing for bubbles is to pop early and often before they start snowballing. These companies have negative net revenue and are burning billions. The tech is neat, but I don’t think text generators are going to completely revolutionize industries the way the industry is presenting them. NVIDIA giving OpenAI money to give to Oracle to give back to NVIDIA just screams house of cards.
Serious question: what if I am, and have no idea how to prep for it?
My pension and other things are tied up in stocks and such, if there’s a crash coming I’d think cash under the pillow would be better than stocks. But how do you do that, with your pension?
I moved the majority of my 401k allocations to international markets and have stopped contributing more than the match minimum. I’ve lost on some serious short term gains but I’m not risking holding the bag with my kid’s future.
I personally prefer to rip off the band aid than let it stink and get it infected. I’m scared for the time remaining before the pop. This shit is intolerable. Let it “pop”. Let it burn.
Oh no, we won’t be able to afford houses or rent or save for retirement or- hang on just a second…
Wait, we already can’t do those things, and the last thing I want to do is, once again, validate the existence of people I would prefer to see in little pieces scattered all over the street for all the pain and suffering they’ve caused just to get a little more money on top of their billions.
Guessing you have no idea what the Great Depression was like. My parents grew up in it.
Great Depression: 30% unemployment
2008 crisis: 4.2% economic contraction
If you think modern America is bad now, boy oh boy, you’re about to get an education on how bad it can really get.
Ok? And this is relevant how? I’m Canadian, so pretty tied to the US’s bullshit at the moment, but damn where’s this US bravery I keep hearing so much about?
Deflection isn’t going to solve your problems.
You are right, but you are comparing apples with oranges here, what was the Great Depression economy contraction ? Or what was the unemployment rates in 2008 ?
Unemployment around the 2008 crisis peaked around 10%.
You’re delusional if you think the 2008 recession remotely compares to the impact of the great depression. You just have 0 frame of reference to compare. I say that as part of the most impacted group: I was just getting out of college when that crashed and it killed my job opportunities.
I don’t think it, I was only pointing out that he was comparing two different things.
I know that there is no way the two events have a compatible frame of reference but that does not means that you can compare the two values.
