If enough other companies report the same, the bubble pops. https://x.com/businessinsider/status/2058778208724455629 Note the text at the bottom. Uber blew through its AI “token” budget for the year in just a few months, and they don’t feel it is working out as well as they might have hoped. And some companies more or less already are, implicitly if not explicitly. Microsoft just cut off Claude Code licenses, and Tom Warren at the Verge claim that this is at least in part because of costs . Target has expressed some anxiety about pricing models for AI agents . Starbucks just shut down an AI inventory experiment that they had been experimenting with because they realized that it couldn’t be trusted: https://x.com/techmeme/status/2057545916417208735 The overall situation is this: Three companies that have not yet shown themselves to be profitable are expected to soon IPO for a total of something like four trillion dollars. Index funds, the staple of many people’s retirement funds, are going to be more or less forced to rapidly absorb these exercises in fantastical thinking. Those exercises in fantastical thinking are premised on the notion that customer demand will be essentially endless. But we are already seeing cracks in that fantasy. If enough customers have second thoughts, none of the three IPO’ing companies will ever hit their long-term projections. In which cases those stocks will eventually fall. A lot of banks may take a hint as well. submitted by /u/AmorFati01
Originally posted by u/AmorFati01 on r/ArtificialInteligence