frontrowstage

Standing above the crowd He had a voice that was strong and loud We'll miss him

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Anthropic urges global freeze on AI as it warns of losing control - The Age https://t.co/tXOCa3Wsye,

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“long-term unemployed — which the government defines as jobless for at least 27 weeks — in a given month this year. That figure is up about 45% from 2019 and 55% from 2023” https://t.co/iHGNlPZRPX

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“The Reserve Bank of Australia (RBA) is facing a nightmare scenario of embedded inflation driven by excessive government spending, excessive immigration, and cost-push energy inflation imported from abroad” https://t.co/I71Et6t4YO

[7NEWS Sydney @7NewsSydney]

Thousands of first homebuyers who purchased under the Albanese government's five per cent deposit scheme are facing a ticking time bomb.

Property prices are expected to plunge due to the budget, meaning many could owe more on their mortgages than their houses are actually worth.

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“Our latest monthly data shows asking prices have now begun to fall in Perth, Brisbane, Adelaide and Canberra, each down around 1 per cent over the past month” https://t.co/b1WNdgYAqJ

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“Higher interest rates and the changes to negative gearing and CGT are a ‘perfect storm’ for the housing market” https://t.co/3bRiHxD6WJ

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“Stress is now entrenched in dual‑income, middle‑ring suburbs that borrowed heavily during the low‑rate era” https://t.co/nN7G4TwTaz

[Bull Theory @BullTheoryio]

🚨 THE FIRST COMPANIES TO ACTUALLY USE AI AT SCALE ARE NOT ABLE TO AFFORD IT.

Big Tech created a manufactured demand bubble by giving billions to AI startups under strict contracts that force them to hand that exact cash right back to buy cloud servers.

Because this money simply travels in a circle, these startups never had to face the real, staggering expense of running giant AI models.

This round trip loop created a protected environment where companies could burn through infinite data because they were essentially playing with house money. But the exact moment this technology leaves the safe loop and hits a normal company with a hard budget constraint, the unit economics break completely.

Real enterprise customers do not get their cash recycled back to their own balance sheets. Every token bill is a final cash outflow.

This is why Uber gave AI coding tools to 5,000 engineers and exhausted its entire annual AI budget by April, with power users burning up to $2,000 a month each.

The invoices are so high that even Microsoft just ordered 100,000 of its own engineers to stop using Claude Code by June because the uncapped token billing became completely untenable. Microsoft has a multi-billion dollar partnership with Anthropic, yet had to cancel internal usage because the tool costs too much to run.

Nvidia's VP of applied deep learning admitted that the cost of compute for his team is now far higher than the actual salaries of his human workers. Wall Street thinks that falling chip prices will automatically fix this, but the math behind agentic AI makes that assumption impossible.

Gartner confirms that even if per-token prices drop 90% by 2030, total corporate bills will keep rising because active AI agents run continuously and resend massive conversation histories, multiplying token consumption up to 30 times per task.

The circular loop successfully fabricated a massive growth story to pump up a $2 trillion cloud backlog, but it hid a product that is structurally too expensive for the real economy to actually deploy.

The massive gap between optimistic earnings call statements and the actual invoices landing on corporate desks is the most mispriced risk in global finance today.

[Crypto Rover @cryptorover]

🚨 THE AI COST CRISIS HAS STARTED.

Microsoft reportedly told engineers to stop using Claude because AI bills were exploding, while Uber says its entire yearly AI budget was already destroyed by April.

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“The bottom line is that buyer demand has fallen sharply, which will ultimately lead to lower prices” https://t.co/OsTSfPkP0S

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“employment decreasing by 18,600” https://t.co/KxTIDjX6UG

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“Right now, too much of the world’s energy still moves through too few chokepoints” https://t.co/f22Zq7XoHz

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“with their servers growing to make up an estimated 22% to 33% of commercial building electricity use by 2050, according to an April report” https://t.co/k6x2VDpC5s

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“Bloomberg reports that the new round of layoffs affects roughly 8,000 roles globally, with engineering and product teams expected to be at the center of the cuts as CEO Mark Zuckerberg reduces labor in favor of GPUs” https://t.co/JjHYhJrFFN

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“The selloff in government bonds intensified Tuesday, pushing the 30-year Treasury yield to the highest level since 2007” https://t.co/7ox5gI7jei

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“The federal budget’s changes to investor property taxes are designed to reduce market demand, lower home prices, and boost first-homebuyer participation and the homeownership rate” https://t.co/bldqLa1GCo

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“Foreign governments cut U.S. Treasurys in March as the Middle East war forced central banks to liquidate dollar reserves, defending local currencies against an energy shock that sent exchange rates tumbling” https://t.co/B9NKTcAtQA

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“The Airline is cutting nearly 140 flights per week, which roughly translates to 27% of its total international flights” https://t.co/3VNaXUnoCO

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“The jaws must close, with the red line (home prices) falling towards the blue line (capacity to pay)” https://t.co/75QpcZGwLf

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“An historic Brisbane butchery has closed its doors after more than 80 years in operation” https://t.co/il3JDovpPI