Comment by devin
1 day ago
It depends on which people you're referring to. The allocation toward AI budget has been so massive that I think a lot of businesses are way behind on trying to assess value for dollar for the AI-related crud they're shelling out for.
Everyone is feeling it out but the vast majority of spend has been subscription based. Some outliers may have used a massive amount of tokens but companies didn't pay for that.
That VC funded gravy train is likely coming to an end. But fortunately there are also reasonably efficient models now so that the tokenmaxxers can still make the (much cheaper) tokens go brrrr.
Those reasonably efficient models assume you use a harness that supports them well, the one size fits all harness of Claude desktop or codex does not support what you want well, and that’s intentional. It’s contradictory that these AI companies will continue to brrrr to the moon and return on AI spend requires discipline…
The next recession (and there's always a next recession) will clean up this AI bubble. The actually useful products and companies will make it the rest goes down.
Yes, but unlike the dot com bubble we’ll be left with half finished (or not even started) abandoned data center projects, instead of reasonably reusable fiber and ISP infra