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AI isn't replacing jobs. AI spending is

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Re: AI isn't replacing jobs. AI spending is

#41

wait until the GPUs and data centers start getting written off for being obsolete in a couple years when we still have nothin but fancy auto complete.

interesting questions, how will this unroll

right now I see even old GPUs like V100 are still popular. Maybe the old GPUs will shift to the countries with cheap electricity?

Re: AI isn't replacing jobs. AI spending is

#42
post #38

Earlier quoted context omitted.

GCCs are expanding in Canada, Ireland, Poland, Czechia, and Costa Rica as well. Indians are more visible, but salary expections have gotten extremely out of whack in the US, and extended WFH during COVID proved to most boards that companies can continue to operate when entire teams are communicating async. If a large portion of interns and NCGs in the US are essentially expecting $45-70/hr salaries, it just isn't sus…

Are they investing tens of billions in new offices in those non-Indian countries? My other comment: https://news.ycombinator.com/item?id=45867014

Yes. (Still in process of generating the list)

Poland [0][8]

Ireland [1][2]

Czechia [3][4]

Canada [5][6]

Turkiye [7]

The expansion of Indian offices is a result of the reverse brain drain that accelerated during the early COVID layoffs along with the EB1/2 backlogs - a number of Staff and above Engineers, EMs and above, and Sr PMs and above who were on work visas were either cut or given the option to relocate to India and start a hub office.

A similar trend happened in other countries, but India being so large means they get overshadowed.

[0] - https://www.gov.pl/web/primeminister/google-invests-billions...

[1] - https://www.amd.com/en/newsroom/press-releases/2023-6-20-amd...

[2] - https://enterprise.gov.ie/en/news-and-events/department-news...

[3] - https://www.itpro.com/business/cato-networks-announces-major...

[4] - https://www.onsemi.com/company/news-media/press-announcement...

[5] - https://www.reuters.com/business/lyft-open-toronto-tech-hub-...

[6] - https://www.connectcre.ca/stories/amazon-plans-toronto-offic...

[7] - https://www.reuters.com/world/middle-east/uber-invest-200-ml...

[8] - https://news.microsoft.com/pl-pl/2025/02/17/microsoft-announ...

Re: AI isn't replacing jobs. AI spending is

#43

Earlier quoted context omitted.

Actual Indians, as always. Humans are cheaper, and have the capacity for long term memory formation.

GCCs are expanding in Canada, Ireland, Poland, Czechia, and Costa Rica as well. Indians are more visible, but salary expections have gotten extremely out of whack in the US, and extended WFH during COVID proved to most boards that companies can continue to operate when entire teams are communicating async. If a large portion of interns and NCGs in the US are essentially expecting $45-70/hr salaries, it just isn't sus…

> but salary expections have gotten extremely out of whack in the US,

You mean cost of living and inflation has devalued the dollar.

Re: AI isn't replacing jobs. AI spending is

#44
The article seems to hinge on the core assumption that revenue is much less than spending:

> Those expenditures may be approaching $1 trillion for 2025, while AI revenue—which would be used to pay for the use of AI infrastructure to run the software—will not exceed $30 billion this year

While it's clear that the author is summing up the spending from the big players, it's not clear to me that their math is right for revenue. Yes, OpenAI, Anthropic, Thinking Machines, SSI, etc. have pretty limited direct revenue (including zero!).

But this comparison assumes no revenue growth for other top computing users. Some companies are certainly saving money on some tasks and increasing revenue, particularly in fields like customer support. See the confusing figure in section 5 of https://hai.stanford.edu/ai-index/2025-ai-index-report/econo... .

That chart is by number of respondents and not weighted by revenue. Like the MIT study, it would not be surprising that "just pipe this to an LLM" isn't enough for most fields or companies. But a few have likely made material improvements.

10% of respondents saying they've seen a >10% revenue gain could be substantial, if they're bigger firms with high leverage in computing.

Edit to add: the comparison also makes a classic "GDP vs market cap" style mistake. Capital expenditure has multiple years of useful life. Revenue is annual. You'd want to compare depreciation vs revenue.

Re: AI isn't replacing jobs. AI spending is

#45
post #40

Earlier quoted context omitted.

Surely this would be indicated by a glut of unfilled job postings.

Here: https://www.npr.org/2025/11/02/nx-s1-5591302/ghost-jobs-are-...

I don't see the relation. A "ghost job posting" is not evidence of recent graduates failing to meet the requirements of the past; it is a job posting an employer has no intention of filling to begin with.

Re: AI isn't replacing jobs. AI spending is

#46
post #32
post #9

That's an interesting point that I haven't considered before: that the narrative of AI replacing jobs plus the widespread cheating in school using LLMs is making students less engaged and new graduates less employable, becoming a self-fulfilling prophecy for AI.

This is one of the aspects of AI ethics that I don't think gets nearly enough attention: the general psychological effect that information about AI has on people, regardless of their interactions with the tools themselves. Students getting lazy, or dropping out of subjects entirely because they don't think they have a future in them. Depression and a general feeling of despair. I see this in programming communities q…

Btw, the recent Conversations with Tyler had a few minutes on this topic with Sam:

https://podcasts.apple.com/us/podcast/conversations-with-tyl...

It was a bit towards the end, I think.

Re: AI isn't replacing jobs. AI spending is

#47
post #43

Earlier quoted context omitted.

GCCs are expanding in Canada, Ireland, Poland, Czechia, and Costa Rica as well. Indians are more visible, but salary expections have gotten extremely out of whack in the US, and extended WFH during COVID proved to most boards that companies can continue to operate when entire teams are communicating async. If a large portion of interns and NCGs in the US are essentially expecting $45-70/hr salaries, it just isn't sus…

> but salary expections have gotten extremely out of whack in the US, You mean cost of living and inflation has devalued the dollar.

London has a similar CoL as San Francisco yet tech salaries are around 33%-50% what are offered in the Bay. Same with Toronto.

On top of that, both the British and Canadian governments give some degree of tax subsidy and regulatory support, though not to the degree that India, Israel, Poland, Czechia, or Romania provide.

Why should I pay Jeff from NCSU a US$175K TC in RTP when I can get Jane who chose to return to Toronto after living in the US working for large companies throughout her 20s?

A lot of techies on HN really underestimate the amount of reverse brain drain that happened during and after COVID. The COVID layoffs in early-mid 2020 primarily targeted those on some kind of work visa, and a number of those laid off were given the option to take a pay cut but also open a node in their home country.

Edit: can't reply so replying here

> I hear this, but the fact is a 70% pay cut in the Bay Area would simply not be workable at all

This is why we began opening offices in RTP, Denver, Chicago, NYC, etc in the 2017-22 period because we could pay closer to London or Toronto salaries back then in those offices and we had state level support.

All of that went to the wayside after COVID because a large portion of our workforce reverse braindrained, and someone in RTP demanding WFH and a Bay Area salary in a metro where CoL is comparable to Fresno and where we had to spend significant amounts of capital in commercial real estate to unlock tax benefits is ridiculous.

We are fine paying high salaries and TC, but it needs to be justified by actually high tier talent. Think the Netflix model.

Re: AI isn't replacing jobs. AI spending is

#48

wait until the GPUs and data centers start getting written off for being obsolete in a couple years when we still have nothin but fancy auto complete.

Imagine if you spent those years building something else.

Yes, like renewable energy infrastructure (which China does, and would be highly useful anyway in case generative AI does live up to its promise).

Even if generative AI lives up to its hype, with current US administration there's no way America is going to lead the race for long. There's just not enough energy available, when those in power oppose developing many of the energy projects that make most economical sense.

Re: AI isn't replacing jobs. AI spending is

#49

As a recently laid of senior engineer, to the extent that my job was replaced, it was replaced with offshore junior devs who'd already been working with the company for over year with a pretty rough level of productivity by man-hour, though maybe taking 3x the time to get things done is worth it if they're cheap enough. Which is to say I see my layoff as as cost cutting backed by a premise that there is no value in r…

one of the main drivers is companies like Deel that make it very easy to hire remote workers anywhere and I think AWS will soon launch a similar service

Re: AI isn't replacing jobs. AI spending is

#50
post #29

This week OpenAI, Google, And Perplexity announced free 1 year subscription to Indian devs. It must cost quite a fortune in inference https://www.bbc.co.uk/news/articles/c14pr0enjr6o Not a single mention of jobs being moved to India including tens of billions of investments in new offices. Backing links from a quick search earlier this week when an obviously Indian HNer tried to deny this was really happening: Micros…

Confirmation bias, maybe? 15B is like 1.5% of a trillion dollars currently being invested in AI..
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