Pavel @spavel.bsky.social · 09/07/2025Startups offer massive subsidies to customers to get them to sign - just like OpenAI etc offered even their paid services at low prices at first. So they need infusions of cash (through these funding rounds) to keep collecting customers - and building hype for subsequent, bigger funding rounds. 2160
Pavel @spavel.bsky.social · 09/07/2025This funding is critical to the slop waterfall, because upstream companies desperately need that money and those logos to sustain their own hype. What happens when the prices get too high and the end customer decides it's cheaper to just go back to hiring humans to do the job once (and properly)?futurism.comCompanies That Tried to Save Money With AI Are Now Spending a Fortune Hiring People to Fix Its MistakesCompanies that rushed to replace human labor with AI are now shelling out to have IRL workers to fix the technology's screwups. 1324
Pavel @spavel.bsky.social · 09/07/2025Well, what happens is that the hype collapses. And there's nothing propping up the bubble except hype. First at the edges, as the companies directly providing services burn their runway. When they start to fold, the companies providing services to *those* companies start losing their customer base. 1222