David Chisnall (*Now with 50% more sarcasm!*)Mar 14

RE: https://mstdn.social/@rysiek/116226720041425679

Louder for people at the back:

If ‘AI’ gives you a 20% productivity increase, in an economic system that rewards growth at the expense of everything else, the rational thing for any company to do is use that productivity increase to expand into new markets. This may involve some redundancies because you need different skills for the new opportunities but they will be matched by increased hiring in the other areas. If you and your competitors both see a 20% increase in productivity and you use it to make people redundant and they use it to ship more products in more areas, then they will grow at your expense. Their products will be better than yours and you will lose market share.

If you are claiming that you have redundancies because ‘AI’ is increasing productivity, then one of the following is true:

  • Your leadership team does not understand market economics (in which case, investors should worry that the board has not replaced obviously incompetent leadership).
  • You are an unchallengeable monopoly and have already filled all adjacent markets and have literally no possibility of growth (in which case, investors should take note and set their price predictions based on today’s revenue, with no expectation of future growth, which would wipe out over 80% of Meta’s market cap).
  • You are lying about productivity gains (in which case, investors should worry about what else you’re lying about and should start prodding the SEC to investigate).
Show threadohirMar 14

@david_chisnall
Fourth bullet: you don't give a trump about who will buy your product or service.

Does any #nazitech company works on autonomous agentic buyer now? If so whose money this shopping ai agent is meant to spent? Purchasing power of the #protein buyer population diminishes with each wave of layoffs.

Show threadGary HoustonMar 15
@ohir @david_chisnall a fifth would be that you have a cozy relationship with your "competitors", you don't attack their part of the market and they don't attack yours.
Show threadDavid Chisnall (*Now with 50% more sarcasm!*)

@ghouston @ohir

That works in the short term, but only in markets where the barriers to entry are really high. For anything else, it means companies that you don’t think of as competitors (including startups) are now able to start nibbling at the edges.

Mar 15 at 7:32amWeb
Show threadohirMar 15
@david_chisnall @ghouston
No one can compete now, as wannabe competitors were killed by succesful attack on the basic resources: Ram and Flash. Furure supply is now dependent of the core oligopoly will as they bought "options" on its production. Both goals of this operation are achived now. General population will be moved to thin clients, competitors cant start as they are stripped of ability to build infrastructure.