NEW: AI is failing to pay off in the way companies anticipated, layoffs driven by automation are failing to generate expected returns according to Fortune.
I am so thoroughly convinced that anyone who thinks AI 100x's their output is a liar or a lunatic.
You are telling me you can make 1 years worth of decisions in 3.65 days? Let alone describing those accurately and coaxing the result from the AI... (1.8 days european time)?
ChatGPT uses 39 million gallons of water every single day for its data cooling centers.
No, i don't want to see you as a scream character i don't want to see a picture of your dog as a human, and i definitely don't care about your ChatGPT wrapped.
BREAKING: Ray Dalio just said the AI market is a bubble and it will burst.
"All great technology changes produce bubbles," Dalio told Bloomberg. "The pricking is the converting of wealth into money" right now, every major tech company is pouring hundreds of billions into AI infrastructure and booking it as investment.
The moment investors demand actual returns, companies will have to show that the money spent is generating real profits from real customers. If the revenue is not there, valuations collapse and right now, the revenue is not there.
AI companies are spending $800 billion in capital expenditure this year alone. OpenAI spends $60 billion annually on cloud infrastructure against $25 billion in actual revenue.
Less than 1% of executives globally report meaningful ROI from their AI investments. 95% of enterprise AI pilots have failed to deliver measurable returns according to MIT.
The entire $2 trillion cloud backlog held by Microsoft, Oracle, Google, and Amazon is anchored by two unprofitable companies: OpenAI and Anthropic.
By 2030, the industry needs $2 trillion in annual revenue to justify what is being built today. Bain estimates it will fall $800 billion short.
Dalio is not saying the technology is fake. He is saying the economics do not work yet and every bubble in history has ended the same way when that moment of reckoning arrived.