Sean Straus
scstraus.bsky.social
Sean Straus
@scstraus.bsky.social
American living in Prague for 25 years. Using automation, machine learning, natural language understanding, and large language models to make better customer experiences. Parent, musician, skier, gamer, traveler in the time that's left.
Did Cloudfare just bring down half the internet?
November 18, 2025 at 12:53 PM
Is OpenAI spending more just to run inference than it is making in revenue from it's products?
Exclusive: Here's How Much OpenAI Spends On Inference and Its Revenue Share With Microsoft
As with my Anthropic exclusive from a few weeks ago, though this feels like a natural premium piece, I decided it was better to publish on my free one so that you could all enjoy it. If you liked or f...
www.wheresyoured.at
November 14, 2025 at 12:58 AM
US Job Openings [JTSJOL] vs S&P 500, with vertical line denoting the release date of ChatGPTOC
[Via Reddit](old.reddit.com/r/dataisbeau...)
November 8, 2025 at 10:57 AM
Hmmm...
November 2, 2025 at 6:38 PM
Reposted by Sean Straus
Discounted ChatGPT Go Is Now Available In 98 Countries

OpenAI's made ChatGPT Go available in 98 countries, including 8 in Europe and 5 in Latin America.

Telegram AI Digest
#chatgpt #gpt #openai
Discounted ChatGPT Go Is Now Available In 98 Countries via @sejournal, @martinibuster
OpenAI's made ChatGPT Go available in 98 countries, including 8 in Europe and 5 in Latin America.
www.searchenginejournal.com
November 1, 2025 at 11:03 AM
What I don't understand is why LLM's can't just give confidence levels like classic intent engines? Ostensibly, Google Gemini via Vertex seems to do this fairly well..?
LLMs Will Always Hallucinate, and We Need to Live With This
As Large Language Models become more ubiquitous across domains, it becomes important to examine their inherent limitations critically. This work argues that hallucinations in language models are not j...
arxiv.org
November 1, 2025 at 11:05 AM
Whether or not this was actually the cause, I expect we have a lot of learning the hard way ahead of us when it comes to AI.
Amazon Allegedly Replaced 40% of AWS DevOps With AI Days Before Crash
Should we not rely on one service to support everything?
80.lv
October 23, 2025 at 3:48 AM
In my own industry of customer experience, I do see potential for replacing people with this or at least making them more efficient, but it's an incremental step change from things we have already today, not a revolution.
New Yale Study Finds AI Has Had Essentially Zero Impact on Jobs
A new study from Yale University shows that AI hasn't had much of an impact on jobs as many have predicted or feared.
futurism.com
October 8, 2025 at 9:09 AM
He's not wrong
You can just say you’re the other guy from Wham! and people will believe you
October 7, 2025 at 1:49 PM
This crash will be a doozy.
The Tariff Exemption Behind the AI Boom
Data Centers get Tariff-Free Imports. Why Shouldn't we All?
www.apricitas.io
October 6, 2025 at 5:04 AM
The ROI numbers are coming in on early LLM deployments and they aren't pretty.
AI Coding Is Massively Overhyped, Report Finds
The AI industry's claims about AI coding assistants boosting productivity significantly appear to be massively overblown, per a new report.
futurism.com
October 2, 2025 at 9:51 AM
It seems like there's a lot of this circular investment/valuation pumping going on these days, not just in AI but in tech in general, epecially between private equity companies' portfolios.
September 29, 2025 at 7:08 PM
How much gram?
How much gram? - lemmus.org
lemmus.org
September 28, 2025 at 11:59 AM
This is something hilarious I didn't know though.

"Microsoft "invests" in Openai by giving the company free access to its servers. Openai reports this as a ten billion dollar investment, then redeems these "tokens" at Microsoft's data-centers. Microsoft then books this as ten billion in revenue."
Pluralistic: The real (economic) AI apocalypse is nigh (27 Sep 2025)
Today's links The real (economic) AI apocalypse is nigh: Sweating (the assets) to the oldies. Hey look at this: Delights to delectate. Object permanence: Dying on the job; Google audiocomplete blacklist; Lockheed Martin v. 'gathering information.' Upcoming appearances: Where to find me. Recent appearances: Where I've been. Latest books: You keep readin' em, I'll keep writin' 'em. Upcoming books: Like I said, I'll keep writin' 'em. Colophon: All the rest. The real (economic) AI apocalypse is nigh (permalink) Like you, I'm sick to the back teeth of talking about AI. Like you, I keep getting dragged into discussions of AI. Unlike you‡, I spent the summer writing a book about why I'm sick of writing about AI⹋, which Farrar, Straus and Giroux will publish in 2026. ‡probably ⹋"The Reverse Centaur's Guide to AI" A week ago, I turned that book into a speech, which I delivered as the annual Nordlander Memorial Lecture at Cornell, where I'm an AD White Professor-at-Large. This was my first-ever speech about AI and I wasn't sure how it would go over, but thankfully, it went great and sparked a lively Q&A. One of those questions came from a young man who said something like "So, you're saying a third of the stock market is tied up in seven AI companies that have no way to become profitable and that this is a bubble that's going to burst and take the whole economy with it?" I said, "Yes, that's right." He said, "OK, but what can we do about that?" So I re-iterated the book's thesis: that the AI bubble is driven by monopolists who've conquered their markets and have no more growth potential, who are desperate to convince investors that they can continue to grow by moving into some other sector, e.g. "pivot to video," crypto, blockchain, NFTs, AI, and now "super-intelligence." Further: the topline growth that AI companies are selling comes from replacing most workers with AI, and re-tasking the surviving workers as AI babysitters ("humans in the loop"), which won't work. Finally: AI cannot do your job, but an AI salesman can 100% convince your boss to fire you and replace you with an AI that can't do your job, and when the bubble bursts, the money-hemorrhaging "foundation models" will be shut off and we'll lose the AI that can't do your job, and you will be long gone, retrained or retired or "discouraged" and out of the labor market, and no one will do your job. AI is the asbestos we are shoveling into the walls of our society and our descendants will be digging it out for generations: https://pluralistic.net/2025/05/27/rancid-vibe-coding/#class-war The only thing (I said) that we can do about this is to puncture the AI bubble as soon as possible, to halt this before it progresses any further and to head off the accumulation of social and economic debt. To do that, we have to take aim at the material basis for the AI bubble (creating a growth story by claiming that defective AI can do your job). "OK," the young man said, "but what can we do about the crash?" He was clearly very worried. "I don't think there's anything we can do about that. I think it's already locked in. I mean, maybe if we had a different government, they'd fund a jobs guarantee to pull us out of it, but I don't think Trump'll do that, so –" "But what can we do?" We went through a few rounds of this, with this poor kid just repeating the same question in different tones of voice, like an acting coach demonstrating the five stages of grieving using nothing but inflection. It was an uncomfortable moment, and there was some decidedly nervous chuckling around the room as we pondered the coming AI (economic) apocalypse, and the fate of this kid graduating with mid-six-figure debts into an economy of ashes and rubble. I firmly believe the (economic) AI apocalypse is coming. These companies are not profitable. They can't be profitable. They keep the lights on by soaking up hundreds of billions of dollars in other people's money and then lighting it on fire. Eventually those other people are going to want to see a return on their investment, and when they don't get it, they will halt the flow of billions of dollars. Anything that can't go on forever eventually stops. This isn't like the early days of the web, or Amazon, or any of those other big winners that lost money before becoming profitable. Those were all propositions with excellent "unit economics" – they got cheaper with every successive technological generation, and the more customers they added, the more profitable they became. AI companies have – in the memorable phraseology of Ed Zitron – "dogshit unit-economics." Each generation of AI has been vastly more expensive than the previous one, and each new AI customer makes the AI companies lose more money: https://pluralistic.net/2025/06/30/accounting-gaffs/#artificial-income This week, no less than the Wall Street Journal published a lengthy, well-reported story (by Eliot Brown and Robbie Whelan) on the catastrophic finances of AI companies: https://www.wsj.com/tech/ai/ai-bubble-building-spree-55ee6128?st=efV1EF&reflink=article_email_share The WSJ writers compare the AI bubble to other bubbles, like Worldcom's fraud-soaked fiber optic bonanza (which saw the company's CEO sent to prison, where he eventually died), and conclude that the AI bubble is vastly larger than any other bubble in recent history. The data-center buildout has genuinely absurd finances – there are data-center companies that are collateralizing their loans by staking their giant Nvidia GPUs as collateral. This is wild: there's pretty much nothing (apart from fresh-caught fish) that loses its value faster than silicon chips. That goes triple for GPUs used in AI data-centers, where it's normal for tens of thousands of chips to burn out over a single, 54-day training run: https://techblog.comsoc.org/2024/11/25/superclusters-of-nvidia-gpu-ai-chips-combined-with-end-to-end-network-platforms-to-create-next-generation-data-centers/ Talk about sweating your assets! That barely scratches the surface of the funny accounting in the AI bubble. Microsoft "invests" in Openai by giving the company free access to its servers. Openai reports this as a ten billion dollar investment, then redeems these "tokens" at Microsoft's data-centers. Microsoft then books this as ten billion in revenue. That's par for the course in AI, where it's normal for Nvidia to "invest" tens of billions in a data-center company, which then spends that investment buying Nvidia chips. The the same chunk of money being energetically passed back and forth between these closely related companies, all of which claim it as investment, as an asset, or as revenue (or all three). The Journal quotes David Cahn, a VC from Sequoia, who says that for AI companies to become profitable, they would have to sell us $800 billion worth of services over the life of today's data centers and GPUs. Not only is that a very large number – it's also a very short time. AI bosses themselves will tell you that these data centers and GPUs will be obsolete practically from the moment they start operating. Mark Zuckerberg says he's prepared to waste "a couple hundred billion dollars" on misspent AI investments: https://www.businessinsider.com/mark-zuckerberg-meta-risk-billions-miss-superintelligence-ai-bubble-2025-9 Bain & Co says that the only way to make today's AI investments profitable is for the sector to bring in $2 trillion by 2030 (the Journal notes that this is more than the combined revenue of Amazon, Google, Microsoft, Apple Nvidia and Meta): https://www.bain.com/about/media-center/press-releases/20252/$2-trillion-in-new-revenue-needed-to-fund-ais-scaling-trend—bain–companys-6th-annual-global-technology-report/ How much money is the AI industry making? Morgan Stanley says it's $45b/year. But that $45b is based on the AI industry's own exceedingly cooked books, where annual revenue is actually annualized revenue, an accounting scam whereby a company chooses its best single revenue month and multiplies it by 12, even if that month is a wild outlier: https://www.wheresyoured.at/the-haters-gui/ Industry darlings like Coreweave (a middleman that rents out data-centers) are sitting on massive piles of debt, secured by short-term deals with tech companies that run out long before the debts can be repaid. If they can't find a bunch of new clients in a couple short years, they will default and collapse. Today's AI bubble has absorbed more of the country's wealth and represents more of its economic activity than historic nation-shattering bubbles, like the 19th century UK rail bubble. A much-discussed MIT paper found that 95% of companies that had tried AI had either nothing to show for it, or experienced a loss: https://www.technologyreview.com/2019/01/25/1436/we-analyzed-16625-papers-to-figure-out-where-ai-is-headed-next/ A less well-known U Chicago paper finds that AI has "no significant impact on workers’ earnings, recorded hours, or wages": https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5219933 Anything that can't go on forever eventually stops. Trump might bail out the AI companies, but for how long? They are incinerating money faster than practically any other human endeavor in history, with precious little to show for it. During my stay at Cornell, one of the people responsible for the university's AI strategy asked me what I thought the university should be doing about AI. I told them that they should be planning to absorb the productive residue that will be left behind after the bubble bursts: https://locusmag.com/feature/commentary-cory-doctorow-what-kind-of-bubble-is-ai/ Plan for a future where you can buy GPUs for ten cents on the dollar, where there's a buyer's market for hiring skilled applied statisticians, and where there's a ton of extremely promising open source models that have barely been optimized and have vast potential for improvement. There's plenty of useful things you can do with AI. But AI is (as Princeton's Arvind Narayanan and Sayash Kapoor, authors of AI Snake Oil put it), a normal technology: https://knightcolumbia.org/content/ai-as-normal-technology That doesn't mean "nothing to see here, move on." It means that AI isn't the bow-wave of "impending superintelligence." Nor is it going to deliver "humanlike intelligence." It's a grab-bag of useful (sometimes very useful) tools that can sometimes make workers' lives better, when workers get to decide how and when they're used. The most important thing about AI isn't its technical capabilities or limitations. The most important thing is the investor story and the ensuing mania that has teed up an economical catastrophe that will harm hundreds of millions or even billions of people. AI isn't going to wake up, become superintelligent and turn you into paperclips – but rich people with AI investor psychosis are almost certainly going to make you much, much poorer. (Image: TechCrunch, CC BY 2.0; Cryteria, CC BY 3.0; modified) Hey look at this (permalink) EU ministers reach 'compromise' on digital euro roadmap https://www.reuters.com/business/finance/eu-ministers-seek-agreement-digital-euro-be-independent-visa-mastercard-2025-09-19/ Amazon will pay $2.5 billion to settle the FTC’s Prime lawsuit https://www.theverge.com/news/785744/amazon-ftc-prime-subscription-settlment Conservative Dem Compares Ad About Her Corporate Donations to ‘Political Violence’ https://prospect.org/politics/2025-09-25-conservative-dem-ad-corporate-donations-violence-bains-california/ Monopoly Utilities Ousted America's Best Regulator https://economicpopulist.substack.com/p/monopoly-utilities-ousted-americas WNYC offers free programs to stations affected by funding cuts https://current.org/2025/09/wnyc-offers-free-programs-to-stations-affected-by-funding-cuts/ Object permanence (permalink) #20yrsago Financial Times: WIPO’s webcaster treaty is a disaster https://www.ft.com/content/441306be-2eb6-11da-9aed-00000e2511c8 #15yrsago Google’s autocomplete blacklist https://www.2600.com/googleblacklist/ #15yrsago FBI ignores DoJ report, raids activists, arrests Time Person of the Year https://www.democracynow.org/2010/9/27/fbi_raids_homes_of_anti_war #15yrsago Meta-textual analysis of mainstream science reporting https://www.theguardian.com/science/the-lay-scientist/2010/sep/24/1 #15yrsago Lockheed Martin sign prohibits sketching and “gathering information” https://www.flickr.com/photos/jef/5028187145/ #5yrsago Ransomware for coffee makers https://pluralistic.net/2020/09/27/junky-styling/#java-script #5yrsago The joys of tailoring https://pluralistic.net/2020/09/27/junky-styling/#inseams #1yrago Return to office and dying on the job https://pluralistic.net/2024/09/27/sharpen-your-blades-boys/#disciplinary-technology Upcoming appearances (permalink) Boston: Enshittification with Randall Munroe (Brattle Theater), Oct 7 https://www.eventbrite.com/e/cory-doctorow-at-the-brattle-theatre-tickets-1591235180259?aff=oddtdtcreator DC: Enshittification with Rohit Chopra (Politics and Prose), Oct 8 https://politics-prose.com/cory-doctorow-10825 NYC: Enshittification with Lina Khan (Brooklyn Public Library), Oct 9 https://www.bklynlibrary.org/calendar/cory-doctorow-discusses-central-library-dweck-20251009-0700pm New Orleans: DeepSouthCon63, Oct 10-12 http://www.contraflowscifi.org/ New Orleans: Enshittification at Octavia Books, Oct 12 https://www.octaviabooks.com/event/enshittification-cory-doctorow Chicago: Enshittification with Anand Giridharadas (Chicago Humanities), Oct 15 https://www.oldtownschool.org/concerts/2025/10-15-2025-kara-swisher-and-cory-doctorow-on-enshittification/ Los Angeles: Enshittification with David Dayen (Diesel), Oct 16 https://dieselbookstore.com/event/2025-10-16/cory-doctorow-enshittification San Francisco: Enshittification at Public Works with Jenny Odell (The Booksmith), Oct 20 https://app.gopassage.com/events/doctorow25 PDX: Enshittification at Powell's, Oct 21 https://www.powells.com/events/cory-doctorow-10-21-25 Seattle: Enshittification and the Rot Economy, with Ed Zitron (Clarion West), Oct 22 https://www.clarionwest.org/event/2025-deep-dives-cory-doctorow/ Madrid: Conferencia EUROPEA 4D (Virtual), Oct 28 https://4d.cat/es/conferencia/ Miami: Enshittification at Books & Books, Nov 5 https://www.eventbrite.com/e/an-evening-with-cory-doctorow-tickets-1504647263469 Miami: Cloudfest, Nov 6 https://www.cloudfest.com/usa/ Burbank: Burbank Book Festival, Nov 8 https://www.burbankbookfestival.com/ Recent appearances (permalink) Enshittification (Cornell) https://ecornell.cornell.edu/keynotes/view/K091225/ Escaping Big Tech, Privacy Battles & “Enshittification” (Revolution.social) https://www.youtube.com/watch?v=exvpetQRSVo Nerd Harder! (This Week in Tech) https://twit.tv/shows/this-week-in-tech/episodes/1047 Latest books (permalink) "Picks and Shovels": a sequel to "Red Team Blues," about the heroic era of the PC, Tor Books (US), Head of Zeus (UK), February 2025 (https://us.macmillan.com/books/9781250865908/picksandshovels). "The Bezzle": a sequel to "Red Team Blues," about prison-tech and other grifts, Tor Books (US), Head of Zeus (UK), February 2024 (the-bezzle.org). "The Lost Cause:" a solarpunk novel of hope in the climate emergency, Tor Books (US), Head of Zeus (UK), November 2023 (http://lost-cause.org). "The Internet Con": A nonfiction book about interoperability and Big Tech (Verso) September 2023 (http://seizethemeansofcomputation.org). Signed copies at Book Soup (https://www.booksoup.com/book/9781804291245). "Red Team Blues": "A grabby, compulsive thriller that will leave you knowing more about how the world works than you did before." Tor Books http://redteamblues.com. "Chokepoint Capitalism: How to Beat Big Tech, Tame Big Content, and Get Artists Paid, with Rebecca Giblin", on how to unrig the markets for creative labor, Beacon Press/Scribe 2022 https://chokepointcapitalism.com Upcoming books (permalink) "Canny Valley": A limited edition collection of the collages I create for Pluralistic, self-published, September 2025 "Enshittification: Why Everything Suddenly Got Worse and What to Do About It," Farrar, Straus, Giroux, October 7 2025 https://us.macmillan.com/books/9780374619329/enshittification/ "Unauthorized Bread": a middle-grades graphic novel adapted from my novella about refugees, toasters and DRM, FirstSecond, 2026 "Enshittification, Why Everything Suddenly Got Worse and What to Do About It" (the graphic novel), Firstsecond, 2026 "The Memex Method," Farrar, Straus, Giroux, 2026 "The Reverse-Centaur's Guide to AI," a short book about being a better AI critic, Farrar, Straus and Giroux, 2026 Colophon (permalink) Today's top sources: James Boyle (https://www.thepublicdomain.org/). Currently writing: "The Reverse Centaur's Guide to AI," a short book for Farrar, Straus and Giroux about being an effective AI critic. FIRST DRAFT COMPLETE AND SUBMITTED. A Little Brother short story about DIY insulin PLANNING This work – excluding any serialized fiction – is licensed under a Creative Commons Attribution 4.0 license. That means you can use it any way you like, including commercially, provided that you attribute it to me, Cory Doctorow, and include a link to pluralistic.net. https://creativecommons.org/licenses/by/4.0/ Quotations and images are not included in this license; they are included either under a limitation or exception to copyright, or on the basis of a separate license. Please exercise caution. How to get Pluralistic: Blog (no ads, tracking, or data-collection): Pluralistic.net Newsletter (no ads, tracking, or data-collection): https://pluralistic.net/plura-list Mastodon (no ads, tracking, or data-collection): https://mamot.fr/@pluralistic Medium (no ads, paywalled): https://doctorow.medium.com/ Twitter (mass-scale, unrestricted, third-party surveillance and advertising): https://twitter.com/doctorow Tumblr (mass-scale, unrestricted, third-party surveillance and advertising): https://mostlysignssomeportents.tumblr.com/tagged/pluralistic "When life gives you SARS, you make sarsaparilla" -Joey "Accordion Guy" DeVilla READ CAREFULLY: By reading this, you agree, on behalf of your employer, to release me from all obligations and waivers arising from any and all NON-NEGOTIATED agreements, licenses, terms-of-service, shrinkwrap, clickwrap, browsewrap, confidentiality, non-disclosure, non-compete and acceptable use policies ("BOGUS AGREEMENTS") that I have entered into with your employer, its partners, licensors, agents and assigns, in perpetuity, without prejudice to my ongoing rights and privileges. You further represent that you have the authority to release me from any BOGUS AGREEMENTS on behalf of your employer. ISSN: 3066-764X
pluralistic.net
September 28, 2025 at 10:25 AM
I don't 100% agree. LLMs do have some use cases that will replace small amounts of jobs. But I do think the crash will be massive.

[1/2]"AI cannot do your job, but an AI salesman can 100% convince your boss to fire you and replace you with an AI that can't do your job, [...]
Pluralistic: The real (economic) AI apocalypse is nigh (27 Sep 2025)
Today's links The real (economic) AI apocalypse is nigh: Sweating (the assets) to the oldies. Hey look at this: Delights to delectate. Object permanence: Dying on the job; Google audiocomplete blacklist; Lockheed Martin v. 'gathering information.' Upcoming appearances: Where to find me. Recent appearances: Where I've been. Latest books: You keep readin' em, I'll keep writin' 'em. Upcoming books: Like I said, I'll keep writin' 'em. Colophon: All the rest. The real (economic) AI apocalypse is nigh (permalink) Like you, I'm sick to the back teeth of talking about AI. Like you, I keep getting dragged into discussions of AI. Unlike you‡, I spent the summer writing a book about why I'm sick of writing about AI⹋, which Farrar, Straus and Giroux will publish in 2026. ‡probably ⹋"The Reverse Centaur's Guide to AI" A week ago, I turned that book into a speech, which I delivered as the annual Nordlander Memorial Lecture at Cornell, where I'm an AD White Professor-at-Large. This was my first-ever speech about AI and I wasn't sure how it would go over, but thankfully, it went great and sparked a lively Q&A. One of those questions came from a young man who said something like "So, you're saying a third of the stock market is tied up in seven AI companies that have no way to become profitable and that this is a bubble that's going to burst and take the whole economy with it?" I said, "Yes, that's right." He said, "OK, but what can we do about that?" So I re-iterated the book's thesis: that the AI bubble is driven by monopolists who've conquered their markets and have no more growth potential, who are desperate to convince investors that they can continue to grow by moving into some other sector, e.g. "pivot to video," crypto, blockchain, NFTs, AI, and now "super-intelligence." Further: the topline growth that AI companies are selling comes from replacing most workers with AI, and re-tasking the surviving workers as AI babysitters ("humans in the loop"), which won't work. Finally: AI cannot do your job, but an AI salesman can 100% convince your boss to fire you and replace you with an AI that can't do your job, and when the bubble bursts, the money-hemorrhaging "foundation models" will be shut off and we'll lose the AI that can't do your job, and you will be long gone, retrained or retired or "discouraged" and out of the labor market, and no one will do your job. AI is the asbestos we are shoveling into the walls of our society and our descendants will be digging it out for generations: https://pluralistic.net/2025/05/27/rancid-vibe-coding/#class-war The only thing (I said) that we can do about this is to puncture the AI bubble as soon as possible, to halt this before it progresses any further and to head off the accumulation of social and economic debt. To do that, we have to take aim at the material basis for the AI bubble (creating a growth story by claiming that defective AI can do your job). "OK," the young man said, "but what can we do about the crash?" He was clearly very worried. "I don't think there's anything we can do about that. I think it's already locked in. I mean, maybe if we had a different government, they'd fund a jobs guarantee to pull us out of it, but I don't think Trump'll do that, so –" "But what can we do?" We went through a few rounds of this, with this poor kid just repeating the same question in different tones of voice, like an acting coach demonstrating the five stages of grieving using nothing but inflection. It was an uncomfortable moment, and there was some decidedly nervous chuckling around the room as we pondered the coming AI (economic) apocalypse, and the fate of this kid graduating with mid-six-figure debts into an economy of ashes and rubble. I firmly believe the (economic) AI apocalypse is coming. These companies are not profitable. They can't be profitable. They keep the lights on by soaking up hundreds of billions of dollars in other people's money and then lighting it on fire. Eventually those other people are going to want to see a return on their investment, and when they don't get it, they will halt the flow of billions of dollars. Anything that can't go on forever eventually stops. This isn't like the early days of the web, or Amazon, or any of those other big winners that lost money before becoming profitable. Those were all propositions with excellent "unit economics" – they got cheaper with every successive technological generation, and the more customers they added, the more profitable they became. AI companies have – in the memorable phraseology of Ed Zitron – "dogshit unit-economics." Each generation of AI has been vastly more expensive than the previous one, and each new AI customer makes the AI companies lose more money: https://pluralistic.net/2025/06/30/accounting-gaffs/#artificial-income This week, no less than the Wall Street Journal published a lengthy, well-reported story (by Eliot Brown and Robbie Whelan) on the catastrophic finances of AI companies: https://www.wsj.com/tech/ai/ai-bubble-building-spree-55ee6128?st=efV1EF&reflink=article_email_share The WSJ writers compare the AI bubble to other bubbles, like Worldcom's fraud-soaked fiber optic bonanza (which saw the company's CEO sent to prison, where he eventually died), and conclude that the AI bubble is vastly larger than any other bubble in recent history. The data-center buildout has genuinely absurd finances – there are data-center companies that are collateralizing their loans by staking their giant Nvidia GPUs as collateral. This is wild: there's pretty much nothing (apart from fresh-caught fish) that loses its value faster than silicon chips. That goes triple for GPUs used in AI data-centers, where it's normal for tens of thousands of chips to burn out over a single, 54-day training run: https://techblog.comsoc.org/2024/11/25/superclusters-of-nvidia-gpu-ai-chips-combined-with-end-to-end-network-platforms-to-create-next-generation-data-centers/ Talk about sweating your assets! That barely scratches the surface of the funny accounting in the AI bubble. Microsoft "invests" in Openai by giving the company free access to its servers. Openai reports this as a ten billion dollar investment, then redeems these "tokens" at Microsoft's data-centers. Microsoft then books this as ten billion in revenue. That's par for the course in AI, where it's normal for Nvidia to "invest" tens of billions in a data-center company, which then spends that investment buying Nvidia chips. The the same chunk of money being energetically passed back and forth between these closely related companies, all of which claim it as investment, as an asset, or as revenue (or all three). The Journal quotes David Cahn, a VC from Sequoia, who says that for AI companies to become profitable, they would have to sell us $800 billion worth of services over the life of today's data centers and GPUs. Not only is that a very large number – it's also a very short time. AI bosses themselves will tell you that these data centers and GPUs will be obsolete practically from the moment they start operating. Mark Zuckerberg says he's prepared to waste "a couple hundred billion dollars" on misspent AI investments: https://www.businessinsider.com/mark-zuckerberg-meta-risk-billions-miss-superintelligence-ai-bubble-2025-9 Bain & Co says that the only way to make today's AI investments profitable is for the sector to bring in $2 trillion by 2030 (the Journal notes that this is more than the combined revenue of Amazon, Google, Microsoft, Apple Nvidia and Meta): https://www.bain.com/about/media-center/press-releases/20252/$2-trillion-in-new-revenue-needed-to-fund-ais-scaling-trend—bain–companys-6th-annual-global-technology-report/ How much money is the AI industry making? Morgan Stanley says it's $45b/year. But that $45b is based on the AI industry's own exceedingly cooked books, where annual revenue is actually annualized revenue, an accounting scam whereby a company chooses its best single revenue month and multiplies it by 12, even if that month is a wild outlier: https://www.wheresyoured.at/the-haters-gui/ Industry darlings like Coreweave (a middleman that rents out data-centers) are sitting on massive piles of debt, secured by short-term deals with tech companies that run out long before the debts can be repaid. If they can't find a bunch of new clients in a couple short years, they will default and collapse. Today's AI bubble has absorbed more of the country's wealth and represents more of its economic activity than historic nation-shattering bubbles, like the 19th century UK rail bubble. A much-discussed MIT paper found that 95% of companies that had tried AI had either nothing to show for it, or experienced a loss: https://www.technologyreview.com/2019/01/25/1436/we-analyzed-16625-papers-to-figure-out-where-ai-is-headed-next/ A less well-known U Chicago paper finds that AI has "no significant impact on workers’ earnings, recorded hours, or wages": https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5219933 Anything that can't go on forever eventually stops. Trump might bail out the AI companies, but for how long? They are incinerating money faster than practically any other human endeavor in history, with precious little to show for it. During my stay at Cornell, one of the people responsible for the university's AI strategy asked me what I thought the university should be doing about AI. I told them that they should be planning to absorb the productive residue that will be left behind after the bubble bursts: https://locusmag.com/feature/commentary-cory-doctorow-what-kind-of-bubble-is-ai/ Plan for a future where you can buy GPUs for ten cents on the dollar, where there's a buyer's market for hiring skilled applied statisticians, and where there's a ton of extremely promising open source models that have barely been optimized and have vast potential for improvement. There's plenty of useful things you can do with AI. But AI is (as Princeton's Arvind Narayanan and Sayash Kapoor, authors of AI Snake Oil put it), a normal technology: https://knightcolumbia.org/content/ai-as-normal-technology That doesn't mean "nothing to see here, move on." It means that AI isn't the bow-wave of "impending superintelligence." Nor is it going to deliver "humanlike intelligence." It's a grab-bag of useful (sometimes very useful) tools that can sometimes make workers' lives better, when workers get to decide how and when they're used. The most important thing about AI isn't its technical capabilities or limitations. The most important thing is the investor story and the ensuing mania that has teed up an economical catastrophe that will harm hundreds of millions or even billions of people. AI isn't going to wake up, become superintelligent and turn you into paperclips – but rich people with AI investor psychosis are almost certainly going to make you much, much poorer. (Image: TechCrunch, CC BY 2.0; Cryteria, CC BY 3.0; modified) Hey look at this (permalink) EU ministers reach 'compromise' on digital euro roadmap https://www.reuters.com/business/finance/eu-ministers-seek-agreement-digital-euro-be-independent-visa-mastercard-2025-09-19/ Amazon will pay $2.5 billion to settle the FTC’s Prime lawsuit https://www.theverge.com/news/785744/amazon-ftc-prime-subscription-settlment Conservative Dem Compares Ad About Her Corporate Donations to ‘Political Violence’ https://prospect.org/politics/2025-09-25-conservative-dem-ad-corporate-donations-violence-bains-california/ Monopoly Utilities Ousted America's Best Regulator https://economicpopulist.substack.com/p/monopoly-utilities-ousted-americas WNYC offers free programs to stations affected by funding cuts https://current.org/2025/09/wnyc-offers-free-programs-to-stations-affected-by-funding-cuts/ Object permanence (permalink) #20yrsago Financial Times: WIPO’s webcaster treaty is a disaster https://www.ft.com/content/441306be-2eb6-11da-9aed-00000e2511c8 #15yrsago Google’s autocomplete blacklist https://www.2600.com/googleblacklist/ #15yrsago FBI ignores DoJ report, raids activists, arrests Time Person of the Year https://www.democracynow.org/2010/9/27/fbi_raids_homes_of_anti_war #15yrsago Meta-textual analysis of mainstream science reporting https://www.theguardian.com/science/the-lay-scientist/2010/sep/24/1 #15yrsago Lockheed Martin sign prohibits sketching and “gathering information” https://www.flickr.com/photos/jef/5028187145/ #5yrsago Ransomware for coffee makers https://pluralistic.net/2020/09/27/junky-styling/#java-script #5yrsago The joys of tailoring https://pluralistic.net/2020/09/27/junky-styling/#inseams #1yrago Return to office and dying on the job https://pluralistic.net/2024/09/27/sharpen-your-blades-boys/#disciplinary-technology Upcoming appearances (permalink) Boston: Enshittification with Randall Munroe (Brattle Theater), Oct 7 https://www.eventbrite.com/e/cory-doctorow-at-the-brattle-theatre-tickets-1591235180259?aff=oddtdtcreator DC: Enshittification with Rohit Chopra (Politics and Prose), Oct 8 https://politics-prose.com/cory-doctorow-10825 NYC: Enshittification with Lina Khan (Brooklyn Public Library), Oct 9 https://www.bklynlibrary.org/calendar/cory-doctorow-discusses-central-library-dweck-20251009-0700pm New Orleans: DeepSouthCon63, Oct 10-12 http://www.contraflowscifi.org/ New Orleans: Enshittification at Octavia Books, Oct 12 https://www.octaviabooks.com/event/enshittification-cory-doctorow Chicago: Enshittification with Anand Giridharadas (Chicago Humanities), Oct 15 https://www.oldtownschool.org/concerts/2025/10-15-2025-kara-swisher-and-cory-doctorow-on-enshittification/ Los Angeles: Enshittification with David Dayen (Diesel), Oct 16 https://dieselbookstore.com/event/2025-10-16/cory-doctorow-enshittification San Francisco: Enshittification at Public Works with Jenny Odell (The Booksmith), Oct 20 https://app.gopassage.com/events/doctorow25 PDX: Enshittification at Powell's, Oct 21 https://www.powells.com/events/cory-doctorow-10-21-25 Seattle: Enshittification and the Rot Economy, with Ed Zitron (Clarion West), Oct 22 https://www.clarionwest.org/event/2025-deep-dives-cory-doctorow/ Madrid: Conferencia EUROPEA 4D (Virtual), Oct 28 https://4d.cat/es/conferencia/ Miami: Enshittification at Books & Books, Nov 5 https://www.eventbrite.com/e/an-evening-with-cory-doctorow-tickets-1504647263469 Miami: Cloudfest, Nov 6 https://www.cloudfest.com/usa/ Burbank: Burbank Book Festival, Nov 8 https://www.burbankbookfestival.com/ Recent appearances (permalink) Enshittification (Cornell) https://ecornell.cornell.edu/keynotes/view/K091225/ Escaping Big Tech, Privacy Battles & “Enshittification” (Revolution.social) https://www.youtube.com/watch?v=exvpetQRSVo Nerd Harder! (This Week in Tech) https://twit.tv/shows/this-week-in-tech/episodes/1047 Latest books (permalink) "Picks and Shovels": a sequel to "Red Team Blues," about the heroic era of the PC, Tor Books (US), Head of Zeus (UK), February 2025 (https://us.macmillan.com/books/9781250865908/picksandshovels). "The Bezzle": a sequel to "Red Team Blues," about prison-tech and other grifts, Tor Books (US), Head of Zeus (UK), February 2024 (the-bezzle.org). "The Lost Cause:" a solarpunk novel of hope in the climate emergency, Tor Books (US), Head of Zeus (UK), November 2023 (http://lost-cause.org). "The Internet Con": A nonfiction book about interoperability and Big Tech (Verso) September 2023 (http://seizethemeansofcomputation.org). Signed copies at Book Soup (https://www.booksoup.com/book/9781804291245). "Red Team Blues": "A grabby, compulsive thriller that will leave you knowing more about how the world works than you did before." Tor Books http://redteamblues.com. "Chokepoint Capitalism: How to Beat Big Tech, Tame Big Content, and Get Artists Paid, with Rebecca Giblin", on how to unrig the markets for creative labor, Beacon Press/Scribe 2022 https://chokepointcapitalism.com Upcoming books (permalink) "Canny Valley": A limited edition collection of the collages I create for Pluralistic, self-published, September 2025 "Enshittification: Why Everything Suddenly Got Worse and What to Do About It," Farrar, Straus, Giroux, October 7 2025 https://us.macmillan.com/books/9780374619329/enshittification/ "Unauthorized Bread": a middle-grades graphic novel adapted from my novella about refugees, toasters and DRM, FirstSecond, 2026 "Enshittification, Why Everything Suddenly Got Worse and What to Do About It" (the graphic novel), Firstsecond, 2026 "The Memex Method," Farrar, Straus, Giroux, 2026 "The Reverse-Centaur's Guide to AI," a short book about being a better AI critic, Farrar, Straus and Giroux, 2026 Colophon (permalink) Today's top sources: James Boyle (https://www.thepublicdomain.org/). Currently writing: "The Reverse Centaur's Guide to AI," a short book for Farrar, Straus and Giroux about being an effective AI critic. FIRST DRAFT COMPLETE AND SUBMITTED. A Little Brother short story about DIY insulin PLANNING This work – excluding any serialized fiction – is licensed under a Creative Commons Attribution 4.0 license. That means you can use it any way you like, including commercially, provided that you attribute it to me, Cory Doctorow, and include a link to pluralistic.net. https://creativecommons.org/licenses/by/4.0/ Quotations and images are not included in this license; they are included either under a limitation or exception to copyright, or on the basis of a separate license. Please exercise caution. How to get Pluralistic: Blog (no ads, tracking, or data-collection): Pluralistic.net Newsletter (no ads, tracking, or data-collection): https://pluralistic.net/plura-list Mastodon (no ads, tracking, or data-collection): https://mamot.fr/@pluralistic Medium (no ads, paywalled): https://doctorow.medium.com/ Twitter (mass-scale, unrestricted, third-party surveillance and advertising): https://twitter.com/doctorow Tumblr (mass-scale, unrestricted, third-party surveillance and advertising): https://mostlysignssomeportents.tumblr.com/tagged/pluralistic "When life gives you SARS, you make sarsaparilla" -Joey "Accordion Guy" DeVilla READ CAREFULLY: By reading this, you agree, on behalf of your employer, to release me from all obligations and waivers arising from any and all NON-NEGOTIATED agreements, licenses, terms-of-service, shrinkwrap, clickwrap, browsewrap, confidentiality, non-disclosure, non-compete and acceptable use policies ("BOGUS AGREEMENTS") that I have entered into with your employer, its partners, licensors, agents and assigns, in perpetuity, without prejudice to my ongoing rights and privileges. You further represent that you have the authority to release me from any BOGUS AGREEMENTS on behalf of your employer. ISSN: 3066-764X
pluralistic.net
September 28, 2025 at 10:21 AM
There are a lot of good use valid cases for LLM's out there, but I don't think any of them are nearly as big as the hype has been made out to be (being able to replace a large portion of human workforces).
Is AI Facing a Trough of Disillusionment?
Is AI's hype cycle leading us into a trough of disillusionment? Dive into the reality behind GPT-5's launch and its impact on the tech world.
spectrum.ieee.org
September 5, 2025 at 10:31 PM
Captain's log
September 3, 2025 at 9:46 AM
September 2, 2025 at 5:49 PM
August 15, 2025 at 2:14 PM
The miracle of life
August 12, 2025 at 7:17 PM
August 12, 2025 at 9:29 AM
I do think that a world model is a key thing for human like AGI. Interacting with the world is what we were made to do. We aren't just brains on shelves. www.theguardian.com/technology/2...
Google says its new ‘world model’ could train AI robots in virtual warehouses
Genie 3 is latest step towards human-level artificial general intelligence, tech company claims
www.theguardian.com
August 6, 2025 at 9:35 AM
Reposted by Sean Straus
August 5, 2025 at 3:38 PM
July 22, 2025 at 1:04 AM
LoRa is pretty cool. Point to point wireless that can replace cell service with peer to peer networking.
It’s Been a Good Run, Phone Providers (Part 2)
YouTube video by Data Slayer
www.youtube.com
July 21, 2025 at 7:34 PM