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Cake day: June 19th, 2023

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  • I suspect a lot of these layoffs are actually just cost cutting in response to these companies doing really poorly, the idea that the jobs are now being done by generative models is largely a smoke screen to save face and avoid admitting that companies are scaling back operations due to a lack of demand.

    Those few cases where they actually are just replacing people are going to vanish the moment that the people hosting the models run out of money to burn and have to charge full price. Like the scale of operating losses is orders of magnitude greater than anything we’ve seen in the past.



  • Most actors don’t make much money playing roles in theater, movies or TV shows (obvious exceptions for big name stars), rather they do those when they can get them, but make most of their money doing ads. If that ad work disappeared, way fewer people could afford to be actors and the overall talent pool would shrink.

    Same goes for people doing drawn art or photography, the commodified work provides a stable income that allows them to pursue the career and creates space for them to produce genuine art.


  • There is absolutely a lot of issues regarding things going on in certain discord servers, or in certain subreddits, less so on twitch or steam.

    But a lot of those issues are due to different use cases being pushed into proximity by being pushed off other platforms, ether by moderation decisions, or by their structure and user engagement maximizing algorithms making certain communities unviable.

    So you end up with communities that need forum or chat room style organization being pushed in to close proximity to communities that run afoul of corporate moderation. This was less of an issue when these things might have just headed off to dedicated websites, but with everything ending up on platforms now, you have this milieu of mundane game or hobbyist communities, communities for mental health discussions, communities about drug usage, explicit adult content, and fringe politics, all right next to each other. Thus cross pollination between all of them becomes inevitable at a far higher rate than if they were on separate platforms, or on a mega platform with a bunch of other things that would dilute the cross pollination.

    I’m not even saying that any of those are explicitly bad things that shouldn’t exist, just that having them all confined in such close proximity is a time bomb. This is not a result of careless management by these companies, but rather the result of pressures pushing these things off of other major platforms, and thus forcing them on to ones that are inherently more permissive.



  • It’s crazy how much money they are losing, and that’s with most of their compute being provided by Microsoft at cost, if not for free in exchange for the use of their models in Microsoft products.

    Both they and Anthropic talk about their business as if they’re a software as a service company, but most SAS doesn’t get more expensive to run the more users there are, not to mention their conversion rate of free users to payed users is abysmal. Like, it’s an unsalvageable train wreck of a business model, I don’t see ether surviving more than a year unless they radically change their business models.


  • As other’s mentioned, probably more a way to fire a bunch of people without having to do so explicitly.

    Microsoft seems to be on a warpath this year regarding layoffs. I wonder if maybe they’re trying to compensate for some giant black hole in their budget. Like, keep the costs looking stable even as some specific department balloons out of control without providing commensurate revenue. Wonder what that could possibly be?


  • The problem is that for a lot of people it has become a substitute that has filled the void left by the slow destruction of other social organizations and institutions. It’d be easy to say that social media sites like Facebook killed them, but I think they were already throughly hollowed out and made inaccessible by the economic pressure on people to be ever more productive workers and ever more economy driving consumers.

    To ask people to dispense with whatsapp, instagram or facebook is to ask them to abandon their ability to be part of communities that matter to them. It’s sort of an intractable problem as it requires whole communities to abandon ship together, which is difficult to do. The solution to the problem is to easy that process and decrease barriers to doing so.


  • It’s one of those situations where we see how kind people can be, and how indifferent and cruel to that kindness a depersonalized organization can be.

    The type of thinking that says “ well, yah, sure users won’t like ads in the start menu, but we need to make money on the unlicensed installs, and they’ll switch to something else if we brick them for not paying, so we’re going to inflict this on paying users as well, because they’re not going to switch.”

    Is the same type of of thinking that says “well, this government is willing to sign a huge contract to use our infrastructure, but only if we punish anyone in our organization who speaks out against them, so we’ll just fire anyone who does so. This would be much harder if they were all unionized, but luckily we nipped that in the bud.”

    Microsoft’s organizational and incentive structure makes these outcomes inevitable. Profit before people is the rule.







  • megopie@beehaw.orgtoTechnology@beehaw.orgAI Is A Money Trap
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    1 month ago

    The thing is, companies like Google, Facebook, Amazon and Microsoft are already profitable, so it could lose them huge amounts of money, with no real meaningful benefit to user retention or B2B sales, but the companies as a whole would still be profitable. It could be a huge money black hole, but they continue to chase it out of unjustified FOMO and in an attempt to keep share prices high through misplaced investor confidence.

    Apple’s share price has taken a pretty big hit from the perception that they’re “falling behind” on AI, even if they’ve mostly just backed away from it because users didn’t like it when it was shoved in their face. Other companies are probably looking at that and saying “hey, we’d rather keep the stock market happy and our share prices high rather than stop wasting money on this”.


  • It’s so disingenuous and absurd to claim this is a AI problem. It’s an over saturation of qualified individuals in a field, problem. These companies and executives are just using AI as a cover story to hide the fact that the industry is not growing fast enough to employ the number of skilled professionals in the field. This was the point of the whole “learn to code” talking points. Executives and shareholders wanted an over-saturation in the field so as to push down wages and reduce the bargaining power of employees.

    This situation kind of hammers home the importance of a robust social safety net, strong unions, minimum wages that keep up with inflation, and maintaining an affordable cost of living. There being a saturation in one job market should not doom people to poverty conditions. Even a job at chipotle should pay well enough to live comfortably on, and workers there should have enough bargaining power to ensure decent treatment.

    Like, we need to act collectively to ensure stability and prosperity. There is no path that someone can take individually to ensure these things, no escape hatch to prosperity for “hard workers”. “Learning to code” and “Get a CS degree” seemed like a straight forward answer, but here we are.