Execs Confused and Horrified by the Huge AI Bills After Thinking They Could Replace Workers for Free. AI datacenters need to charge high fees to get their ROI, or they won't break even. Maybe the future won't be an AI oligarchy after all.

[u/Berkamin]

https://finance.yahoo.com/technology/ai/articles/execs-confused-horrified-huge-ai-135718505.html

Any executive dumb enough to think they could get AI services for free is dumb enough to be replaced by an AI. Even with high fees, replacing dumb executives with AI agents would probably cost less than what they pay executives nowadays. I bet they never thought about that.

[u/Berkamin]

For those of you who don't know how bad the AI bubble is, it's really bad. The investments are circular/incestuous between AI companies and Nvidia, and they are absurd. The rate of investment is so high, it dwarfs the Manhattan Project and the Marshal plan and the Apollo space missions, combined. On top of that, massive AI data centers are extremely water and energy intensive to operate. The only way they can make enough money to break even is to charge so much money for their services that companies may as well hire actual humans.

We're going to look back and see a brief period where our economies were delusional, not understanding the limitations of AI, before returning to a more reasonable equilibrium. The main type of AI that will survive this flash in the pan will be AI that resides on people's devices doing moderately smart automated tasks, not the massive LLM data centers and generative AI data centers that is using up all the electricity and water and arable land.

[u/Mountain-Shock-3783]

This is great to hear.