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Companies rein in AI usage as costs strain budgets

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Re: Companies rein in AI usage as costs strain budgets

#81
I mean it’s funny to watch.

I’ve got screenshots from months ago telling people exactly this stuff would be reported in the coming months. Just funny to watch really. I’m more convinced than ever you cannot trust most people - you must think for yourself and most people are stupid.

Re: Companies rein in AI usage as costs strain budgets

#82
post #20
post #4

I genuinely have no idea how some of these companies got so far over their skis on AI. It simply does not make sense to me.

I'm consistently burning over $100/day in Claude/OpenAI tokens using Codex and Claude - but I'm on the subscriptions so I'm only paying $100/month to each vendor. If I worked for a larger company that isn't allowed to use those subscriptions and has to pay list price I'd be costing them ~$2,000/month. Now times that by a large engineering team.

[flagged]

Re: Companies rein in AI usage as costs strain budgets

#83
post #18

> The ride-hailing company has introduced usage caps, limiting employees to $1,500 in monthly token spending on individual AI tools, after blowing through its entire AI 2026 budget by April. Right, because they set their 2026 budget in 2025. And in 2025 nobody could predict how good (and token-hungry) coding agents would get after November 2025. I'd be surprised if any company that set an AI budget for 2026 hasn't bl…

If they were getting something in return (financially) they’d have no problem expanding the budget even.

You seem to be desperate. What’s wrong? Finding it hard to believe that you can have all this intelligence but it can make the firm financially worse off? Haha.

Re: Companies rein in AI usage as costs strain budgets

#84

I'm so frustrated by both the zealous AI bulls and the blind AI opposition. There's a lot of issues, ranging over technical, cultural, environmental, and moral problems. But there's also obvious value. To say otherwise tells me you haven't actually tried to make use of these tools. It's one thing to get an AI google response and feel like it's dubious, it's another thing to know what you want and have an LLM find the…

But there's also obvious value. To say otherwise tells me you haven't actually tried to make use of these tools.

The issue is not that AIs are useless. It's that they are objectively worse at the job (except apparently programming[1]), than a cheaper, entry-level worker on their first week still learning how to do the job, even though nearly a trillion dollars has been spent on them by this point. The worker gets substantially better over time, and slightly more expensive. LLM models get slightly better over time, but substantially more expensive.

[1] The output of even the latest models would have gotten a junior programmer PIP'd back when I was still programming many years ago. That is now considered to be above average code quality is a disheartening referendum on how bad programming standards have fallen since then.

Re: Companies rein in AI usage as costs strain budgets

#85

We're in a dangerous valley where AI is _just_ good enough to fool some otherwise very smart people. Similar to the old adage of "a little bit of information is a dangerous thing." Lots of CEOs got duped into thinking that model capabilities were far ahead of where they actually were. I'm actually not sure if we're going to get out of the valley without figuring out a surefire way to reliably evaluate these things.

> Lots of CEOs got duped into thinking that model capabilities were far ahead of where they actually were. Are these CEOs the "very smart people" you're talking about? To my eyes it's mostly the same crowd that was drooling over crypto and blockchain and the metaverse just a few years ago, and it was clear that was a stupid idea at the time too.

It's not the same crowd. I know some genuinely extremely intelligent people (can't go into specifics) who have gotten bit by AI psychosis. It's been wild to see.

Re: Companies rein in AI usage as costs strain budgets

#86
post #31

We're in a dangerous valley where AI is _just_ good enough to fool some otherwise very smart people. Similar to the old adage of "a little bit of information is a dangerous thing." Lots of CEOs got duped into thinking that model capabilities were far ahead of where they actually were. I'm actually not sure if we're going to get out of the valley without figuring out a surefire way to reliably evaluate these things.

They got duped into it partly because of the enthusiasm and demoware shown by folks like the ones that topped HN with their exhortations about the wonders of AI for coding. We’re not innocent bystanders here, and it’s important to recognize that. Our hype added to the hype. Our optimism added to the optimism. After layoffs due to Section 172 and interest rates going up, technologists were looking for a reason to be i…

I'm not criticizing CEOs, only mentioning them because they're at the helm and the ones calling the shots at companies. But the psychosis has hit pretty much everyone, of all intelligence ranges.

Also, I'm genuinely excited about AI. It's absolutely incredible. Even with all the problems, I'm more invigorated about being a programmer than at almost any point in my career. You have to embrace the chaos.

Re: Companies rein in AI usage as costs strain budgets

#87
post #82
post #20

Earlier quoted context omitted.

I'm consistently burning over $100/day in Claude/OpenAI tokens using Codex and Claude - but I'm on the subscriptions so I'm only paying $100/month to each vendor. If I worked for a larger company that isn't allowed to use those subscriptions and has to pay list price I'd be costing them ~$2,000/month. Now times that by a large engineering team.

[flagged]

Don't make burner accounts just to make one comment. Use your actual account if you're gonna call someone deluded, and even then, that's against the rules.

Re: Companies rein in AI usage as costs strain budgets

#88
post #19

> Since the start of the year, Chinese AI models have overtaken their US counterparts in token consumption, according to data from OpenRouter, an aggregation platform that allows users to access multiple AI models. That's a bit of a dodgy statistic. OpenRouter only tracks their own users - the vast majority of API customers for OpenAI and Anthropic presumably go straight to their APIs.

It's true that OpenRouter may be a biased sample - however, do we have reason to think that isn't a relatively stable biased sample? If not, then the trendline in OpenRouter usage is still pretty interesting.

Re: Companies rein in AI usage as costs strain budgets

#89
post #50

I'm so frustrated by both the zealous AI bulls and the blind AI opposition. There's a lot of issues, ranging over technical, cultural, environmental, and moral problems. But there's also obvious value. To say otherwise tells me you haven't actually tried to make use of these tools. It's one thing to get an AI google response and feel like it's dubious, it's another thing to know what you want and have an LLM find the…

> To say otherwise tells me you haven't actually tried to make use of these tools. There's also a lot of ideological opposition, which often tries to claim that the tech is useless etc. > Am I missing out on the work involved in learning things I would be forced to otherwise, also yes. Yes, but many of those things are things you might not really care about learning about. And if you want to learn about them, AI can…

Get it right, 99.99% of ideological opposition is mostly do to the naked display of wealth concentration where we are literally forcing Americans to bear the higher costs of electricity, noise pollution, actual pollution, and increased cancer rates while they are flushing down trillions of dollars into the drain while Americans lack medicare for all, universal childcare, free higher education, or even a public jobs program (fun fact, all these programs poll above 70-80%).

The naked display of the elites willing to fuck over large swaths of Americans is not only despicable it is in our civic duty to rightfully fight and reject this.

No one wants this yet it is being thrusted upon us and we are forced to pay for this madness. If you ask most Americans they would probably be completely okay with nationalizing big tech or seizing their assets.

Why does this tech have to champion naked displays of greed where the elites feign surprise that people are willing to fight for their lives?

This is the single issue that unites Americans across parties, incomes, and race; it's the class issue of the century and the people yearn for material change.

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