Did you want 14,000 words about why the AI industry sucks (beyond the environmental harms or the real risks to vulnerable individuals, that is)? I give you Ed Zitron’s “The Hater’s Guide to the AI Bubble.”
This is my very abbreviated summary, but in the Hater’s Guide he explains that 1) companies pushing AI aren’t making real money from it (or are actually losing money); in part because 2) essentially there is no breakout or standalone AI software or service; and 3) the whole “AI industry” is actually just based on buying and selling GPUs:
Microsoft, Meta, Google, Apple, Amazon and Tesla aren’t making much money from AI — in fact, they’re losing billions of dollars on whatever revenues they do make from it. Their stock growth is not coming from actual revenue, but the vibes around “being an AI company,” which means absolutely jack shit when you don’t have the users, finances, or products to back them up.
So, really, everything comes down to NVIDIA’s ability to sell GPUs, and this industry, if we’re really honest, at this point only exists to do so. Generative AI products do not provide significant revenue growth, its products are not useful in the way that unlocks significant business value, and the products that have some adoption run at such a grotesque loss.
And that’s where we get the bubble, which…seems bad! (This unrelated quick explanation on adjusted job numbers from the Bureau of Labor Statistics included this fun nugget: “Capex spending for AI contributed more to growth in the U.S. economy in the past two quarters than all of consumer spending, says Neil Dutta, head of economic research at Renaissance Macro Research, citing data from the Bureau of Economic Analysis.”)
Zitron’s conclusion in his hater’s guide articulates so much of what I also dislike about AI:
There is an overwhelming condescension that comes from fans of generative AI — the sense that they know something you don’t, something they double down on. We are being forced to use it by bosses, or services we like that now insist it’s part of our documents or our search engines, not because it does something, but because those pushing it need us to use it to prove that they know what’s going on.
… generative AI also brings out the worst in some people. By giving the illusion of labor, it excites those who are desperate to replace or commoditize it. By giving the illusion of education, it excites those who are too idle to actually learn things by convincing them that in a few minutes they can learn quantum physics. By giving the illusion of activity, it allows the gluttony of Business Idiots that control everything to pretend that they do something. By giving the illusion of futurity, it gives reporters that have long-since disconnected from actual software and hardware the ability to pretend that they know what’s happening in the tech industry.
And, fundamentally, its biggest illusion is economic activity, because despite being questionably-useful and burning billions of dollars, its need to do so creates a justification for spending billions of dollars on GPUs and data center sprawl, which allows big tech to sink money into something and give the illusion of growth.