Earlier quoted context omitted.
There may be a word missing in the post title. Should be "Microsoft reports show AI is more expensive...". The fact that AI is more expensive still comes through, even though Microsoft does not state this explicitly.
Builders you pay to equip with hammers are more expensive than builders you do not equip with hammers too. More news at 11.
Microsoft reports AI is more expensive than paying human employees
41–50 of 74 posts
Re: Microsoft reports AI is more expensive than paying human employees
#42The title seems misleading, and reading the article explains the reason more clearly. There's nonsense OKR's and objectives at these companies to burn as many tokens as possible. It turns out that when you make a metric out of token usage, it unsurprisingly ends up becoming extremely expensive. Inference is affordable, and you don't need a SOTA proprietary model to get a lot of use out of this technology. While you l…
Re: Microsoft reports AI is more expensive than paying human employees
#43Earlier quoted context omitted.
The media seems hellbent on torching AI. My news feeds are nothing but stories about the evils of data centers, how useless AI is, and how much everyone hates it.
The media is hellbent on torching it, and on propping it up against all reason too, both things can be true. HN is no exception. It's another noisy room problem where the distortion in dialogue is rapidly leading us into a distorted reality. https://thenoisyroom.com/ For people who are actually interested in reality, participation in the mainstream discourse either way is a strategic error. The best thing to do is to…
that's terrible advice. those guys dedicate their lives to the advancement of this field. there's no way you will get a tempered, balanced answer from them. none of them will gravitate towards "yeah, maybe we should stop or slow down for a while".
Re: Microsoft reports AI is more expensive than paying human employees
#44The usage of AI has to be put in context for cost analysis. A lot of people I see are using AI to beautify their documents, their slack conversations, emails, generating big enough documents with small prompts. Sending a slack message or email should not have required AI within the company. Its wastage of resources and time, just to make it sound better without changing much of the meaning.
Re: Microsoft reports AI is more expensive than paying human employees
#45Earlier quoted context omitted.
The media seems hellbent on torching AI. My news feeds are nothing but stories about the evils of data centers, how useless AI is, and how much everyone hates it.
well datacenters should go near power plants or cool mountain areas for ML training loads, it just doesn't make sense to build them near residential areas for few millisecs
Absolutely f'ing not
Re: Microsoft reports AI is more expensive than paying human employees
#46The premise of this article is incorrect - MS isn't cancelling Claude code internal usage because of AI costs too much, they're cancelling it because GitHub copilot is the compete product and they want their employees to use their product. It's the same reason Teams got so much attention during lockdown.
> It's the same reason Teams got so much attention during lockdown
Not sure I see the parallel with the point you were making
Re: Microsoft reports AI is more expensive than paying human employees
#47The title seems misleading, and reading the article explains the reason more clearly. There's nonsense OKR's and objectives at these companies to burn as many tokens as possible. It turns out that when you make a metric out of token usage, it unsurprisingly ends up becoming extremely expensive. Inference is affordable, and you don't need a SOTA proprietary model to get a lot of use out of this technology. While you l…
Also, from the article it seems they just switched from one LLM (Claude Code) to another one (GitHub Copilot) rather than abandoning "AI"...
As much as I may dislike MS, their software or their practices I have to admit that they have pulled this off at least once before. Back in 2019/2020 their Teams web client was absolutely atrocious and utterly unusable on Linux. Sometime in 2023/2024 it had become quite tolerable and worked mostly better than Google Meet. (Screen sharing options in Teams suck to this day, though.)
Re: Microsoft reports AI is more expensive than paying human employees
#48>> Microsoft has reportedly begun canceling most of its direct Claude Code licenses Hearsay information and click bait.
Re: Microsoft reports AI is more expensive than paying human employees
#49The title seems misleading, and reading the article explains the reason more clearly. There's nonsense OKR's and objectives at these companies to burn as many tokens as possible. It turns out that when you make a metric out of token usage, it unsurprisingly ends up becoming extremely expensive. Inference is affordable, and you don't need a SOTA proprietary model to get a lot of use out of this technology. While you l…
The media seems hellbent on torching AI. My news feeds are nothing but stories about the evils of data centers, how useless AI is, and how much everyone hates it.
This about it like this - if you were a CEO of a company that ONLY made garden gnomes, would you rather a) nobody ever talk about garden gnomes, or b) garden gnomes be in the news every day, people protesting because they’re losing their jobs because of garden gnomes, companies making billions and collectively investing trillions to making garden gnomes, people starting startups to support the garden gnomes pipeline, consumer electronics prices having huge variance because of the demand to support garden gnomes etc.
When you’re one of the largest garden gnomes companies in the world, you want garden gnomes to saturate the zeitgeist