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"The Subprime AI Crisis" - Ed Zitron on the bubble's impending collapse (www.wheresyoured.at)

submitted 1 month ago by BlueMonday1984@awful.systems to c/techtakes@awful.systems

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None of what I write in this newsletter is about sowing doubt or "hating," but a sober evaluation of where we are today and where we may end up on the current path. I believe that the artificial intelligence boom — which would be better described as a generative AI boom — is (as I've said before) unsustainable, and will ultimately collapse. I also fear that said collapse could be ruinous to big tech, deeply damaging to the startup ecosystem, and will further sour public support for the tech industry.

Can't blame Zitron for being pretty downbeat in this - given the AI bubble's size and side-effects, its easy to see how its bursting can have some cataclysmic effects.

(Shameless self-promo: I ended up writing a bit about the potential aftermath as well)

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[–] blakestacey@awful.systems 20 points 1 month ago* (last edited 1 month ago)

From the documentation:

While reasoning tokens are not visible via the API, they still occupy space in the model's context window and are billed as output tokens.

Huh.