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Posted by delaugust 9 hours ago

AI is a front for consolidation of resources and power(www.chrbutler.com)
122 points | 91 commentspage 2
tim333 5 hours ago|
The coming of AI seems one of those things like the agricultural revolution or industrial revolution that is kind of inevitable once it starts. All the business of who pays how much for which stock and what price is sensible and which algorithm seem kind of secondary.
pksebben 3 hours ago||
There are some flavors of AI doomerism that I'm unwilling to fight - the proliferance of AI slop, the inability of our current capital paradigm to adjust such that loads of people don't become overnight-poor, those sorts of things.

If you tell me, though, that "We installed AI in a place that wasn't designed around it and it didn't work" you're essentially complaining that your horse-drawn cart broke when you hooked it up to your HEMI. Of course it didn't work. The value proposition built around the concept of long dev cycles with huge teams and multiple-9s reliability deliverables is not what this stuff excels at.

I have churned out perfectly functional MVPs for tens of projects in a matter of weeks. I've created robust frameworks with >90% test coverage for fringe projects that would never have otherwise gotten the time budget allotted to them. The boundaries of what can be done aren't being pushed up higher or down deeper, they're being pushed out laterally. This is very good in a distributed sense, but not so great for business as usual - we've had megacorps consolidating and building vertically forever and we've forgotten what it was like to have a robust hacker culture with loads of scrappy teams forging unbeaten paths.

Ironically, VCs have completely missed the point in trying to all build pickaxes - there's a ton of mining to do in this new space (but the risk profile makes the finance-pilled queasy). We need both.

AI is already very good at some things, they just don't look like the things people were expecting.

eightman 7 hours ago||
The use case for AI is spam.
topaz0 2 hours ago||
It's the reverse printing press, drowning all purposeful human communication in noise.
bdw5204 2 hours ago||
Another major use case for it is enabling students to more easily cheat on their homework. Which is why it is probably going to end up putting Chegg out of business.
octoberfranklin 1 hour ago||
I am shocked when I talk to college kids about AI these days.

I try to explain stuff to them like regurgitating the training data, context window limits, and confabulation.

They stick their fingers in their ears and say "LA LA LA LA it does my homework for me nothing else matters LA LA LA LA i can't hear you"

They really do not care about the Turing Test. Today's LLMs pass the "snowed my teaching assistant test" and nothing else matters.

Academic fraud really is the killer app for this technology. At least if you're a 19-year-old.

Kiro 7 hours ago||
> it’s a useful technology that is very likely overhyped to the point of catastrophe

I wish more AI skeptics would take this position but no, it's imperative to claim that it's completely useless.

mwhitfield 7 hours ago|
I've had *very* much the opposite experience. Very nearly every AI skeptic take I read has exactly this opinion, if not always so well-articulated (until the last section, which lost me). But counterarguments always attack the complete strawman of "AI is utterly useless," which very few people, at least within the confines of the tech and business commentariat, are making.
wyre 35 minutes ago|||
I found the last section to be the most exciting part of the article. Describing a conspiracy around AI development, not being about the AI, but the power that a few individuals will gain by building data centers that rival the size, power, and water consumption of small cities, which are will be used to gain political power.
Kiro 7 hours ago|||
Maybe I'm focusing too much in the hardliners but I see it everywhere, especially in tech.
layer8 6 hours ago|||
If you’re talking about forums and social media, or anything attention-driven, then the prevalence of hyperbole is normal.
emp17344 6 hours ago|||
Where’s all the data showing productivity increases from AI adoption? If AI is so useful, it shouldn’t be hard to prove it.
logicprog 46 minutes ago||
Measuring productivity in software development, or even white collar jobs in general, let alone the specific productivity gains of even things like the introduction of digital technology and the internet at all, let alone stuff like static vs dynamic types, or the productivity difference of various user interface modalities, is notoriously extremely difficult. Why would we expect to be able to do it here?

https://en.wikipedia.org/wiki/Productivity_paradox

https://danluu.com/keyboard-v-mouse/

https://danluu.com/empirical-pl/

https://facetation.blogspot.com/2015/03/white-collar-product...

https://newsletter.getdx.com/p/difficult-to-measure

tptacek 2 hours ago||
My new thing with articles like these: just search for the word "water".

I think that what is really behind the AI bubble is the same thing behind most money, power, and influence: land and resources. The AI future that is promised, whether to you and me or to the billionaires, requires the same thing: lots of energy, lots of land, and lots of water. Datacenters that outburn cities to keep the data churning are big, expensive, and have to be built somewhere. The deals made to develop this kind of property are political — they affect cities and states more than just about any other business run within their borders.

w_for_wumbo 7 hours ago||
This is what I wonder to, what is the end game? Advance technology so that we can have anything that we want, whenever we want it. Fly to distant galaxies. Increase the options available to us and our offspring. But ultimately, what will we gain from that? Is it to say that we did it or is it for the pleasure of the process? If it's for pleasure, then why have we made our processes so miserable for everyone involved? If it's to say that we did it, couldn't we not and say that we did? That's the whole point of fantasy. Is Elon using AI to supplement his own lack of imagination?

I could be wrong, this could be nonsense. I just can't make sense of it.

JohnMakin 6 hours ago||
> Fly to distant galaxies

Unless AI can change the laws of physics, extremely unlikely.

w_for_wumbo 5 hours ago||
I see, Fly was perhaps the wrong word to use here. Phase-Shift to new galaxies is probably the right term. Where you change your entire system's resonant frequency, to match what exists in the distant galaxy. Less of transportation, and more of a change of focus.

Like the way we can daydream about a galaxy, then snap-back to work. It's the same mechanism, but with enhanced focus you go from not just visualising > feeling > embodying > grounding in the new location.

We do it all the time, however because we require belief that it's possible in order to maintain our location, whenever we question where we are - we're pulled back into the reality that questions things (it's a very Earth centric way of seeing reality)

walterbell 1 hour ago||
Any favorite movies or TV episodes on the above themes?
akomtu 1 hour ago||
If things were left to their own devices, the end game would a civilization like stroggos: the remaining humans will choose to fuse with machines, as it would give them an advantage. The first tactical step will be to nudge people to give up more and more agency to AI companions. I doubt this future will materialise, though.
Animats 8 hours ago||
It's pretty clear that the financialization aspect of AI is a bubble. There's way too much market cap created by trading debt back and forth. How well AI will work remains an open question at this point.
milesskorpen 8 hours ago|
It's a big number - but still less than tech industry profits.
Octoth0rpe 7 hours ago||
That is true, but not evenly distributed. Oracle for example: https://arstechnica.com/information-technology/2025/11/oracl...

Also, it may be true that these companies theoretically have the cash flow to cover to spending, but that doesn't mean that they will be comfortable with that risk, especially as that risk becomes more likely in some kind of mass extinction event amongst AI startups. To concretize that a bit, the remote possibility of having to give up all your profits for 2 years to payoff DC investment is fine at 1% chance of happening, but maybe not so ok at a 40% chance.

philipkglass 8 hours ago||
I think that what is really behind the AI bubble is the same thing behind most money, power, and influence: land and resources. The AI future that is promised, whether to you and me or to the billionaires, requires the same thing: lots of energy, lots of land, and lots of water.

If you just wanted land, water, and electricity, you could buy them directly instead of buying $100 million of computer hardware bundled with $2 million worth of land and water rights. Why are high end GPUs selling in record numbers if AI is just a cover story for the acquisition of land, electricity, and water?

bix6 8 hours ago||
But with this play they can inflate their company holdings and cash out in new rounds. It’s the ultimate self enrichment scheme! Nobody wants that crappy piece of land but now it’s got GPUs and we can leverage that into a loan for more GPUs and cash out along the way.
exceptione 7 hours ago|||
Valid question. What the OP talks about though is that these things were not for sale normally. My takeaway from his essay is that a few oligarchs get a pass to take over all energy, by means of a manufactured crisis.

  When a private company can construct what is essentially a new energy city with no people and no elected representation, and do this dozens of times a year across a nation to the point that half a century of national energy policy suddenly gets turned on its head and nuclear reactors are back in style, you have a sudden imbalance of power that looks like a cancer spreading within a national body. 

He could have explained that better. Try to not look at the media drama the political actors give you each day, but look at the agenda the real powers laid bare

- Trump is threatening an oil rich neighbor with war. A complete expensive as hell army blowing up 'drug boats' (claim) to make help the press sell it as a war on drugs. Yeah right.

- Green energy projects, even running ones, get cancelled. Energy from oil and nuclear are both capital intensive and at the same time completely out-shined by solar and battery tech. So the energy card is a strong one to direct policy towards your interests.

If you can turn the USA into a resource economy like Russia, than you can rule like a Russian oligarch. That is also why the admin sees no problem in destroying academia or other industries via tariffs; controlling resources is easier and more predictable than having to rely on an educated populace that might start to doubt the promise of the American Dream.

amunozo 7 hours ago||
I did not think about it that way, but it makes perfect sense. And it is really scary. It hasn't even been a year since Trump's second term started. We still have three more years left.
kjkjadksj 8 hours ago||
Because then you can buy calls on the GPU companies
dvcoolarun 7 hours ago||
I believe it’s a bubble. Every app interface is becoming similar to ChatGPT, claiming they’ll “help you automate,” while drifting away from the app’s original purpose.

Most of this feels like people trying to get rich off VC money — and VCs trying to get rich off someone else’s money.

qoez 8 hours ago|
Best case is hardly a bubble. I definitely think this is a new paradigm that'll lead to something, even if the current iteration won't be the final version and we've probably overinvested a slight bit.
layer8 6 hours ago||
The author thinks that the bubble is a given (and doesn’t have to spell doom), and the best case is that there isn’t anything worse in addition.
threetonesun 8 hours ago||
Same as the dot-com bubble. Fundamentals were wildly off for some businesses, but you can also find almost every business that failed then running successfully today. Personally I don't think sticking AI in every software is where the real value is, it's improving understanding of huge sets of data already out there. Maybe OpenAI challenges Google for search, maybe they fail, I'm still pretty sure the infrastructure is going to get used because the amount of data we collect and try to extract value from isn't going anywhere.
coffeebeqn 7 hours ago||
Something notable like pets.com is literally chewy just 20 years earlier
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