this post was submitted on 18 May 2026
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Fuck AI

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A place for all those who loathe AI to discuss things, post articles, and ridicule the AI hype. Proud supporter of working people. And proud booer of SXSW 2024.

AI, in this case, refers to LLMs, GPT technology, and anything listed as "AI" meant to increase market valuations.

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Excerpt:

The IPO Math Forces the Issue

Both OpenAI and Anthropic are on IPO timelines for the second half of 2026. OpenAI completed the largest private funding round in history in April, $122 billion at an $852 billion post-money valuation. Anthropic has reportedly surpassed $30 billion in annualized revenue. Massive numbers, both of them. Also both attached to companies that are still burning cash at extraordinary rates.

Public markets will not tolerate the gap between subscription revenue and compute cost that has defined the past three years. The moment either company files, analysts will demand unit economics that show a path to margin. Usage-based billing is the fastest way to demonstrate that path.

None of this contradicts the repricing thesis. The pricing war is the last land grab before the gate closes. Both companies are spending aggressively now to lock in users whose switching costs will make them sticky when prices rise. OpenAI offers two months free. Anthropic offers 50% more capacity. Both expire in July. What comes after July is the real pricing.

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[–] rekabis@lemmy.ca 56 points 1 day ago (3 children)

So first they get devs hooked on AI.

Then they watch and wait as dev skills degrade. Like, the actual skills to get the work done without AI.

Then, once devs are unable to be productive without AI anymore, they turn down the screws, pulling profit from those who cannot do without anymore.

It’s a tactic of capitalism that is as old as time. But I think it’s been done too quickly this time, as there are still plenty of devs which have sat on the sidelines, waiting for things to shake out, and who haven’t had their skills erode away from AI usage because they just haven’t been relying on it or even using it.

[–] RememberTheApollo_@lemmy.world 2 points 14 hours ago

EEE all over again.

[–] BarneyPiccolo@lemmy.cafe 1 points 15 hours ago

How fast did their skills decrease? We didn't really even start hearing much about aAI until about a year ago. It was all theoretical up until then. They should be able to level up their skills again pretty quickly.

[–] Yeller_king@reddthat.com 11 points 1 day ago (2 children)

Problem is there is tons of competition and anyone with a video card can run models on their PC for the cost of electricity.

[–] Auli@lemmy.ca 2 points 17 hours ago

No where as good or fast. And somebody has to make the model.

[–] axexrx@lemmy.world 13 points 1 day ago

Thats why theyre trying to buy up all the hardware-

[–] whalebiologist@lemmy.world 23 points 1 day ago* (last edited 1 day ago)

This is article slop, please don't make me read things that were written by bots, have no authors, feature ai generated images, citing themselves as a source... People would happily Ai-generate anti-ai blog posts and sell them to us all day long if we let them.

This stuff is from press releases, primary sources are not hard to find.

[–] quick_snail@feddit.nl 14 points 1 day ago (3 children)

My first thought is that companies that built dependence on AI workflows will just start hiring humans again.

But I think it's more likely they'll just switch to free, self-hosted AI models.

[–] magic_smoke@lemmy.blahaj.zone 3 points 15 hours ago* (last edited 15 hours ago) (1 children)

The whole point of cloud was that renting wholesale infrastructure is cheaper and less hassle than building your own.

There's no way anything but a sliver of dependent companies are capable of hosting their current LLM usage.

[–] quick_snail@feddit.nl 1 points 12 hours ago

Nah, LLMs are small and easy to run

[–] ICastFist@programming.dev 10 points 1 day ago (1 children)

But I think it’s more likely they’ll just switch to free, self-hosted AI models.

Implying anyone left there will even have the know-how to set one up

[–] quick_snail@feddit.nl 2 points 1 day ago* (last edited 1 day ago)

Wow, you just convinced me to learn how to do something with AI.

It'll be a very useful skill to help companies migrate from third party to self hosted AI in the next decade

[–] Cityshrimp@lemmy.world 8 points 1 day ago (1 children)

Still not “free” even if self-hosted and I would think perf and accuracy would be noticeably worse.

My company started using AI in coding process a lot more now but its only because the AI responses are useful 80% of the time. If its lower than that, not worth the time to use for most tasks.

[–] quick_snail@feddit.nl 2 points 1 day ago

I don't really think it matters. Companies that have adopted AI are already fucked. It hurts more then helps.

But they'll be willing to thow VC money at hiring people to setup AI systems, despite how much worse it leaves them

[–] zeroConnection@programming.dev 11 points 1 day ago* (last edited 1 day ago) (2 children)

There's a mass move to Chinese models now, which are like 10 times cheaper already, and will probably be about 50 times cheaper when the new pricing kicks in for Claude and Codex.

Can't wait for the American AI companies to go bust.

[–] humanspiral@lemmy.ca 1 points 14 hours ago

Chinese model labs are still doing token (monthly) bundles, too. Core problem is that bundles only work when most people don't use up the limit. US models have high cash burn and low margins even at high token prices.

[–] Buddahriffic@lemmy.world 3 points 1 day ago

Not to mention China could subsidise them just to pressure the US companies even more.

I wonder if they are timing it for the price increase to let them stick to the promotions that cost them more before pulling the rug. Could even be a win to open source them if the US government tries to block it.

[–] stoly@lemmy.world 102 points 2 days ago (1 children)

Honestly: those who based a business model on this are probably bad business people.

[–] Carnelian@lemmy.world 48 points 2 days ago (2 children)

I feel for the employees whose lives will be tumulted by their moronic management who went “all in”

[–] Zizzy@lemmy.blahaj.zone 12 points 2 days ago

If you think this will stop at just harming the employees of those companies, youre wrong

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[–] UnspecificGravity@piefed.social 73 points 2 days ago (2 children)

The idea of people investing billions based on "annualized revenue" tells me that rich people have too much fucking money.

[–] yakko@feddit.uk 43 points 2 days ago

They've literally never had this much more, proportionally. If this isn't too much, there's no such thing.

[–] dumnezero@piefed.social 27 points 2 days ago

Money is 100% wasted on the rich.

[–] jonathan@piefed.social 31 points 2 days ago (1 children)

The headline seems way off from the content. It talks about planned IPOs as the basis, and somehow a "time bomb went off" "in real time". What kind of chronology is that. I've read better AI generated stories than this dogshit click bait.

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[–] Naich@piefed.world 47 points 2 days ago (3 children)

Enshittification in 5... 4... 3...

[–] clucose@lemmy.ml 33 points 2 days ago

it started shit.

[–] Thorry@feddit.org 23 points 2 days ago

Microsoft has already raised prices with their Github Copilot service. In some cases the new price is 27x higher. And the actually useful models are only available in the super expensive plan (and then also incur high fees for actually using it).

[–] BradleyUffner@lemmy.world 20 points 2 days ago (1 children)

How do you enshittify shit?

[–] Tronn4@lemmy.world 13 points 2 days ago (1 children)

AI.... now with CoPilot! 🙃🙂

[–] BradleyUffner@lemmy.world 10 points 2 days ago

It's the turducken of shit!

[–] melsaskca@lemmy.ca 5 points 1 day ago (2 children)

This reminds me of the "pet rock" craze in the early 70's. Everyone as getting them. They were everywhere. Myself, and a few others, never got one and never did. The whole "pet rock" thing came and went and passed us by. I plan to do the same for "AI".

[–] tronx4002@lemmy.world 1 points 12 hours ago

Man, comparing AI to a pet rock is crazy delusional.

[–] mcepl@lemmy.world 3 points 18 hours ago (2 children)

You missed on a lot with a pet rock, my daughter discovered them just a few years ago and was completely in heaven from the idea. Perhaps, the similar with AI?

[–] Whats_your_reasoning@lemmy.world 1 points 16 hours ago

They’re both essentially chunks of metal that people treat like living things. Except pet rocks don’t fuck the environment and siphon energy off the power grid.

[–] melsaskca@lemmy.ca 1 points 16 hours ago

Dammit! After hearing this maybe I should have tried harder to grab that brass ring. Life holds some regret for us all, I guess.

[–] brucethemoose@lemmy.world 40 points 2 days ago* (last edited 2 days ago) (1 children)

How does this work when “good enough” AI like Deepseek V4, GLM and such are so dirt cheap they’re basically free for businesses? And available from tons of providers, or even self hostable?

And that’s only going to get exponentially more dramatic. Bitnet models + nonlinear attention + ASICs alone is at least an order of magnitude cost drop, though there’s tons of lower hanging fruit to pick.


AI is a race to the bottom, not the top. Intelligence has basically topped out, efficiency has not. It’s never going to replace most workers, but just assist them or automate dumb tasks, increasingly cheaply.

And Tech Bros can’t make trillions off of that.

[–] NaibofTabr@infosec.pub 14 points 2 days ago (1 children)

How does this work when “good enough” AI like Deepseek V4, GLM and such are so dirt cheap they’re basically free for businesses? And available from tons of providers, or even self hostable?

Typically what separates enterprise-grade products and services from alternatives is a contract with an SLA... but that generally means there's some contractual requirements for the reliability and productivity of the product or service. I'm not sure that any of the overhyped chatbots are reliable enough to support such contractual obligations, or that there's a useful way to measure their productivity.

[–] brucethemoose@lemmy.world 13 points 2 days ago* (last edited 2 days ago) (2 children)

contract with an SLA

Plenty of hosters provide that. Cerebras, for example, fabs their own ASICs (seperate from Nvidia), builds them into servers, hosts a number of open-weights models themselves in friendly jurisdictions, and offers SLAs for enterprise clients; it doesn't get more "guaranteed" than that in AI Land, but there are tons of hosts to choose from.

https://www.cerebras.ai/build-with-us


The major sticking point is that the best open weights models are Chinese. This doesn't actually matter from a security standpoint anymore than buying a Chinese tire does; they're dumb weights anyone can finetune, host and run on whatever software/hardware stack one wants... But try explaining that technical distinction of "using Chinese AI" to executives responsible for entire corporations.

There are even attempts to "launder" Chinese models to make them palatable for western enterprise use. For example:

https://huggingface.co/microsoft/MAI-DS-R1

https://huggingface.co/unsloth/r1-1776

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[–] ininewcrow@lemmy.ca 28 points 2 days ago (1 children)

The rich have already cashed out and secured their fortunes

It's the suckers, losers, poors and those who think they know better who are all going to lose everything

[–] NaibofTabr@infosec.pub 19 points 2 days ago (1 children)

They're going to try to stick taxpayers with the debt in a "too big to fail" way, and the current administration will help them.

[–] ininewcrow@lemmy.ca 13 points 2 days ago

Another classic example of ...

CAPITALIZE PROFITS!

SOCIALIZE LOSSES!

When the system ... any system fails, the owner class like to congratulate themselves on how they made it work so good ... but when it fails, they're the ones always groveling to the masses asking them to pay for everything.

[–] plyth@feddit.org 13 points 2 days ago (1 children)

The real pricing will come when companies can't go back to regular workers, as predicted here: https://feddit.org/post/30017257

[–] davidgro@lemmy.world 12 points 2 days ago (1 children)

Apparently that post is gone?

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