💸💸 OpenAI exec says it will burn $50B on compute this year
｢ If it wasn't obvious, that would be $50 billion of someone else's money. Nearly four years after ChatGPT kicked off the AI boom, OpenAI's leadership hasn't yet figured out how to turn a profit. Heck, the company can't even manage to hit its own revenue targets, if recent reports are to be believed ｣
https://www.theregister.com/2026/05/05/openai_50b_compute/
💱 Can Investors Trust AI Sales Figures? Asks Wall Street Journal Opinion Piece - Slashdot
｢ It cites OpenAI's $1.5 billion joint venture with private-equity firms, Anthropic's $200 million contribution to a private-equity firm joint venture, and Google's $750 million subsidization of Gemini's adoption by consulting firms ｣
A Wall Street Journal opinion piece warns of "a troubling trend" in AI's growth. "Rather than selling software, some AI companies are paying their partners to use it." It cites OpenAI's $1.5 billion joint venture with private-equity firms, Anthropic's $200 million contribution to a private-equity...
It smells like the dotcom bubble all over again, it is just that the stakes have got rather larger - and we know who sill pay. It won’t be those who have fuelled it, just small investors, saves and pension funds.
Reading the runes it all has the reminders of the apocryphal story of two tribes on a deserted island building an economy by taking in one anothers washing. And then the soap ran out.
｢ AI might be killing jobs not through its labor-saving wizardry but by increasing spending so much that CEOs are pressured to find savings, giving them cover to consciously uncouple from their workforces ｣
https://it.slashdot.org/story/26/05/02/0338227/what-if-tech-company-layoffs-arent-all-about-ai
"Running a Big Tech company during Silicon Valley's AI mania may not necessarily require fewer workers or cost less," writes the Washington Post: Amazon, Google and Meta together have roughly the same number of employees now as they did during an industry-wide hiring binge in 2022, company disclosu...
(11/12) How does the bubble unwind? Already is. Watch the pricing games and the shift to charging for tokens. AI companies have been operating on Loony Toons physics, but gravity is catching up.
As the bubble pops, expect the house of cards around data center financing to implode. This is as much a “Data Center bubble” as it is an “AI bubble.”
https://misaligned.markets/what-to-expect-ai-bubble/#1-implosion-of-the-ai-startup-ecosystem
(7/12) Just as LLMs rely on tooling and governance, market systems rely on rules and laws. There is no “emergent” LLM intelligence, just as there is no “self-regulating” free market. Both are myths of autonomy. https://misaligned.markets/ai-hype-market-fundamentalism/
(2/12) To understand the bubble, we first have to demystify the tech. LLMs require staggering amounts of human involvement during training and at runtime. Any “intelligence” is heavily scaffolded. That most discussions don't start with this notion criminal.
https://misaligned.markets/understanding-large-language-models/
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