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Replies

Pavel @spavel.bsky.social · 09/07/2025

This 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.com

Companies That Tried to Save Money With AI Are Now Spending a Fortune Hiring People to Fix Its Mistakes

Companies that rushed to replace human labor with AI are now shelling out to have IRL workers to fix the technology's screwups.

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Pavel @spavel.bsky.social · 09/07/2025

Well, 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.

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Pavel @spavel.bsky.social · 09/07/2025

Eventually, foundation model providers (Anthropic, OpenAI) raising prices will come back to bite them, in the form of their downstream consumers going out of business. They can keep the hype going for some time by claiming that "the models are getting better" but "better" doesn't help the math.

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