[HN Gopher] Microsoft cancels leases for AI data centers, analys...
       ___________________________________________________________________
        
       Microsoft cancels leases for AI data centers, analyst says
        
       Author : suraci
       Score  : 281 points
       Date   : 2025-02-24 10:12 UTC (12 hours ago)
        
 (HTM) web link (www.bloomberg.com)
 (TXT) w3m dump (www.bloomberg.com)
        
       | bob1029 wrote:
       | > a couple of hundred megawatts.
       | 
       | So, something approximating an entire region or 10~100k H100s.
        
       | decimalenough wrote:
       | Not surprised. You need massive amounts of compute for training
       | LLMs from scratch, but practical uses of LLMs are increasingly
       | focused on using existing models with minimal or no tweaks, which
       | requires far less computing power.
        
         | belter wrote:
         | I would like to note Bloomberg pulls these types of FUD before
         | every NVDA earnings release. The last one they did was the
         | false reports on Blackwell technical issues.
         | 
         | They have been doing it for years
         | 
         | "Bloomberg fined EUR5m over report of fake news release" -
         | https://www.ft.com/content/32013b6a-202f-11ea-b8a1-584213ee7...
         | 
         | "Supermicro Statement on Bloomberg's Claims" -
         | https://www.supermicro.com/en/pressreleases/supermicro-state...
         | 
         | After Bloomberg reported a subpoena was sent to Nvidia and
         | other unnamed technology companies...
         | 
         | "Nvidia Denies It Was Subpoenaed In Justice Department
         | Antitrust Probe" -
         | https://www.forbes.com/sites/antoniopequenoiv/2024/09/04/nvi...
        
           | suraci wrote:
           | This is indeed worth noting.
           | 
           | Bloomberg seems to be a player in the market, or at least it
           | is affected by players in the market.
           | 
           | It always publishes news in good rhythm with the market.
           | 
           | this article is just a reference, still need to wait for
           | Microsoft's announcement
        
             | isoprophlex wrote:
             | so, historically speaking, who should i short? ;)
        
               | wizzwizz4 wrote:
               | Unless you learn of a Bloomberg article before it goes
               | out, you shouldn't.
        
               | suraci wrote:
               | when there's a scam, don't be scammed
        
           | kjw wrote:
           | Completely agree with you re: Bloomberg's somewhat shady
           | history of reporting. However, in this case, the article is
           | citing a research note written by TD Cowen equity research
           | analysts.
           | 
           | For example, here's another article from MarketWatch citing
           | this same research note --
           | https://www.marketwatch.com/story/the-research-note-thats-
           | ra...
           | 
           | Leads me to lend more credence to the news even though OP is
           | linking Bloomberg.
        
           | intended wrote:
           | I've worked in equity research, and an accusation of FUD is
           | an accusation of intentionally malign behavior.
           | 
           | Getting reporting wrong is not the same as FUD.
        
             | mvdtnz wrote:
             | When you double down on the incorrect reporting instead of
             | retracting or correcting it, as Bloomberg did with their
             | ludicrous spy chip story, it becomes FUD regardless of your
             | initial intent.
        
               | intended wrote:
               | To what purpose? Enron spread FUD to further its goals.
               | 
               | We can INVENT goals here, to FIT the conclusion we have
               | already reached - that Bloomberg is spreading FUD.
               | 
               | But this is because we have already concluded, and are
               | now finding things to fit our conclusion.
        
             | belter wrote:
             | "Years later, Bloomberg doubles down on disputed Supermicro
             | supply chain hack story" -
             | https://www.datacenterdynamics.com/en/news/years-later-
             | bloom...
        
               | intended wrote:
               | Sorry I forgot.
               | 
               | Yes, this is absolutely FUD.
               | 
               | This is the insistence to spread FUD for ... some
               | uncertain aim.
               | 
               | Perhaps it hitting all these various firms, in order to
               | leverage their strong reputation, to cause the price to
               | drop, allowing someone - perhaps Bloomberg himself, to
               | make a profit off of it.
               | 
               | No no, I know I sound like a conspiracy theorist now. But
               | my eyes were opened by the sharing of the story.
               | 
               | The fact that FT, WSJ, Fox or a million other sites
               | haven't latched onto this obvious scheme, is heinous, and
               | once again a sign of our completely captured media.
        
       | bayesianbot wrote:
       | https://archive.is/dWo55
        
       | drexlspivey wrote:
       | I guess Satya is not good for his $80B (for project Stargate) any
       | more.
        
         | fny wrote:
         | He is: this refers to spending Microsoft had planned on its own
         | outside of Stargate. It says so in the article.
        
           | skywhopper wrote:
           | In other words "Stargate" is itself a lie: no new spending,
           | just a political repackaging of existing plans.
        
             | _heimdall wrote:
             | That's nothing new, politicians lie all the time.
             | 
             | Everyone's response when a politician announcing some
             | supposed massive spending program should be to say "show me
             | the appropriation bill and receipts, then we can talk."
        
               | shigawire wrote:
               | Appropriation bills don't go as far as they used to
               | anymore as well...
        
             | fny wrote:
             | Microsoft has committed $100B to Stargate. These cuts are
             | meaningless by comparison.
        
       | laserbeam wrote:
       | I've read the first 2 paragraphs 5 times and I still can't tell
       | if Microsoft was renting datacenters and paying for them, or if
       | Microsoft was leasing out datacenters and decided "no more AI
       | data centers for you, 3rd parties".
       | 
       | And digging further into the article didn't help either.
        
         | walrus01 wrote:
         | The first one, they were acquiring datacenter space.
        
       | ffjffsfr wrote:
       | key piece of info at the end, looks like they are leaving the
       | spending on datacenter to OpenAI
       | 
       | > Microsoft's alliance with OpenAI may also be evolving in ways
       | that mean the software giant won't need the same kind of
       | investments. In January, OpenAI and SoftBank Group Corp.
       | announced a joint venture to spend at least $100 billion and
       | perhaps $500 billion on data centers and other AI infrastructure.
        
       | jimmySixDOF wrote:
       | In a recent Dwarkesh podcast this week Nadella was just
       | commenting on how they expected to benefit from reduced DC rental
       | pricing and were preparing for Jevon's paradox to max out
       | capacity. I guess they are calculating a ceiling now.
        
       | zkmon wrote:
       | The hype starts to head down towards reality.
        
         | smetj wrote:
         | No it's one level deeper. The exclusive claim to the "hype" is
         | heading down towards reality.
        
       | fny wrote:
       | Here's the TD Cowen research note:
       | 
       | https://www.threads.net/@firerock31/post/DGbK1VkyKlp/in-late...
        
       | helsinkiandrew wrote:
       | Meanwhile: "Apple Says It Will Add 20k Jobs, Spend $500B, Produce
       | AI Servers in US"
       | https://www.bloomberg.com/news/articles/2025-02-24/apple-say...
       | 
       | https://news.ycombinator.com/item?id=43158168
        
         | numbsafari wrote:
         | This has nothing to do with supply/demand, and everything to do
         | with geopolitics.
        
           | FrustratedMonky wrote:
           | You think they would spend 500B without thinking there will
           | be any demand?
        
             | rsynnott wrote:
             | You're missing the key phrase. "Says it will". Companies,
             | of course, say all sorts of things. Sometimes, those things
             | come to pass. But not really all that often.
        
             | dboreham wrote:
             | The 500B is just something to put on a press release.
        
             | sangnoir wrote:
             | It cost Apple $0 to _say_ they 'll spend $500B.
        
         | turnsout wrote:
         | If Apple can pull off "Siri with context," it will completely
         | annihilate Microsoft's first mover advantage. They'll be left
         | with a large investment in a zero-margin commodity (OpenAI).
        
           | asadhaider wrote:
           | Unfortunately Siri remains near useless at times even with
           | Apple Intelligence(tm)(r)
        
             | helsinkiandrew wrote:
             | The "LLM Siri" hasn't been rolled out even in beta,
             | estimates reckon 2026
             | 
             | https://www.macrumors.com/2024/11/21/apple-llm-siri-2026
        
               | joshstrange wrote:
               | Correct, Apple changing the UI before changing the
               | backend might be one of the more stupid things I've ever
               | seen.
        
               | drowntoge wrote:
               | The messiest launch ever. The renewed UI makes it easy to
               | assume that the LLM-backed Siri is already here but just
               | isn't much better than the old one. A marketing disaster.
        
               | turnsout wrote:
               | Yes, although before full "LLM Siri," Apple promised an
               | "enhanced" Siri with contextual understanding in iOS 18.
               | The clock is ticking though--WWDC will be here before you
               | know it.
        
             | ghaff wrote:
             | Just like all the other voice assistants.
        
           | CuriousSkeptic wrote:
           | Apple will not beat Microsoft in any capacity here
           | 
           | Microsoft has all the context in the world just waiting for
           | exploitation: Microsoft Graph data, Teams transcripts and
           | recordings, Office data, Exchange data, Recall data(?), while
           | not context per se even the XBox gaming data
        
             | svnt wrote:
             | I'm sorry but what are you saying.
             | 
             | How are any of these unique competitive advantages over
             | iCloud, App Store, Safari, and just generally more locked-
             | in high margin mobile platform users than anyone?
        
               | michaelt wrote:
               | If the money is in providing AI to businesses, to do
               | things humans were previously paid to do - then Microsoft
               | would be in a much better position than Apple, because
               | they already have a big foothold whereas Apple has never
               | really targeted business use.
        
             | helsinkiandrew wrote:
             | > Apple will not beat Microsoft in any capacity here
             | 
             | I'm sure MS will provide AI to business, but if Apple get
             | things right, they'll be the biggest provider of AI to the
             | masses.
             | 
             | With a Siri that knows your email, calendar, location,
             | history, search history, ability to get data from and do
             | things in 3rd party Apps (with App Intents) and if it runs
             | on your phone for security, it could be used by billions of
             | consumers, not a few hundred million MS office users.
             | 
             | What was that restaurant I went to with Joan last fall?
             | Send linkedin requests to all the people I've had emails
             | from company X.
             | 
             | Of course they could take too long or screw things up.
        
               | tallanvor wrote:
               | I wouldn't be sure about that.
               | 
               | Siri's success would greatly depend on app developers
               | adopting intents. The major players are going to be
               | hesitant to give Apple that much access to data - the EU
               | may help push them that way, but even still, Microsoft,
               | Google, Facebook, and others want their AIs to be the one
               | people use.
               | 
               | Siri is also limited to Apple products, and while lots of
               | people have iPhones, many of them still have a PC, where
               | Siri doesn't work.
               | 
               | Companies are also very concerned about employees
               | accidentally or purposefully exfiltrating data via AI
               | usage. Microsoft is working hard to build in guardrails
               | there and Intune allows companies to block Siri intents,
               | so Apple would have to do a lot to reassure corporate
               | customers how they'll prevent Siri from sending data to a
               | search engine or such.
               | 
               | But you might be right. I think it's way too early to
               | tell, and that's why so much money is being poured into
               | this. All the major players feel that they can't afford
               | to wait on this.
        
               | turnsout wrote:
               | A lot of developers have already adopted intents to
               | support Shortcuts and existing Siri. There will be
               | tremendous business pressure to be able to fit into a
               | request like "Get me a car to my next appointment"
        
           | rs186 wrote:
           | If history is our guide, that's never going to happen.
        
       | qgin wrote:
       | A few things from the Dwarkesh interview with Satya:
       | 
       | * He sees data center leases getting cheaper in near future due
       | to everyone building
       | 
       | * He's investing big in AI, but in every year there needs to be a
       | rough balance between capacity and need for capacity
       | 
       | * He doesn't necessarily believe in fast takeoff AGI (just yet)
       | 
       | * Even if there is fast takeoff AGI, he thinks human messiness
       | will slow implementation
       | 
       | * It won't be a winner-take-all market and there will be plenty
       | of time to scale up capacity and still be a major player
        
         | djtango wrote:
         | > Even if there is fast takeoff AGI, he thinks human messiness
         | will slow implementation
         | 
         | Five years ago during covid all these clunky legacy businesses
         | couldn't figure out a CSV let alone APIs but suddenly with AGI
         | they are going to become tech masters and know how to automate
         | and processize their entire operations?
         | 
         | I found it very amusing that at the turn of the decade
         | "digitalisation" was a buzzword as Amazon was approaching its
         | 25th anniversary.
         | 
         | Meanwhile huge orgs like the NHS run on fax and was crippled by
         | excel row limits. Software made a very slow dent in these old
         | important slow moving orgs. AI might speed up the transition
         | but I don't see it happening overnight. Maybe 5 years if we
         | pretend smartphone adoption is indicative of AGI and humanoid
         | robot rollout
        
           | qwertox wrote:
           | > Meanwhile huge orgs like the NHS run on fax
           | 
           | I thought this was a German-only thing?
        
             | ta1243 wrote:
             | Not convinced.
             | 
             | In 2018:
             | 
             | https://www.gov.uk/government/news/health-and-social-care-
             | se...
             | 
             | > Matt Hancock has banned the NHS from buying fax machines
             | and has ordered a complete phase-out by April 2020.
             | 
             | The NHS is quite federated. Hell many parts of it are
             | independent companies. Some trusts have decent modern
             | systems though - I had to go for a test just before
             | christmas - I'd phoned up my GP in the morning got an
             | appointment for half an hour later, he ordered a test, said
             | go to one of these 8 centres, so I went to one about half
             | an hour away (I live a fair way away from a major town).
             | Had the test, by the time I'd had lunch and driven back
             | home I had another call from the GP asking me to come in
             | that evening, the appointment was created by the GP and
             | read seconds later at the hospital, the test was done there
             | and results reported back again at the click of a system at
             | the GP.
             | 
             | But that's just my local trust. Go 10 miles west and it's
             | another trust and they have different systems. And I had to
             | go to one of the test centres in the trust, I couldn't go
             | to one in a neighbouring trust as they have different
             | systems and there's no/limited interconnects.
        
             | ghaff wrote:
             | The healthcare system I largely use in the US was bought up
             | by another larger system. They are now primarily on an
             | electronic system (which for me is welcome) but some of the
             | offices still use faxes as well.
        
               | dboreham wrote:
               | I had a stint in healthcare software and can confirm the
               | fax thing is real. That said, I had a hunch it's all
               | cloud-hosted fax sending systems delivering to cloud-
               | hosted fax-to-pdf systems. I challenged by colleagues to
               | show me an actual fax machine and never had any takers.
        
           | qgin wrote:
           | I think you don't have widespread adoption until AI takes the
           | form of a plug-and-play "remote employee".
           | 
           | You click a button on Microsoft Teams and hire "Bob" who
           | joins your team org, gets an account like any other employee,
           | interacts over email, chat, video calls, joins meetings, can
           | use all your software in whatever state it's currently in.
           | 
           | It has to be a brownfield solution because most of the world
           | is brownfield.
        
             | lazide wrote:
             | Hah, that isn't a brownfield solution.
             | 
             | These orgs could hire someone who could solve these issues
             | right now (and for the last decade) if they would allow
             | those people to exist in their org.
             | 
             | The challenge is precisely that those people (or people
             | with that capability) aren't allowed to exist.
        
               | dnissley wrote:
               | "Bob" in this example is just some other random
               | individual contributor, not some master of the universe.
               | E.g. they would have the title "associate procurement
               | specialist @ NHS" and join and interact on zoom calls
               | with other people with that title in order to do that
               | specific job.
        
               | Earw0rm wrote:
               | Right, but these jobs are inefficient mostly because of
               | checks and balances. So unless you have a bunch of AIs
               | checking one another's work (and I'm not sure I can see
               | that getting signed off) doesn't it just move the problem
               | slightly along the road?
               | 
               | There's an argument here something like.. if you can
               | replace each role with an AI, you can replace multiple
               | with a single AI, why not replace the structure with a
               | single person?
               | 
               | And the answer is typically that someone has deemed it
               | significant and necessary that decision-making in this
               | scenario be distributed.
        
               | AlexCoventry wrote:
               | > those people (or people with that capability) aren't
               | allowed to exist
               | 
               | I'm not sure what personal characteristics or
               | capabilities you're referring to, FWIW.
        
             | jajko wrote:
             | Completely unusable in any bank, or almost any organization
             | dealing with data secrecy. You have complex, often
             | mandatory processes to onboard folks. Sure, these can be
             | improved but hiring some 'Bob' would be far from smooth
             | sailing.
             | 
             | Big enough corps will eventually have their own trusted
             | 'Bobs' just like they have their own massive cluster farms
             | (no, AWS et al is not a panacea and its far from cheap&good
             | solution).
             | 
             | Giving any form of access to some remote code into internal
             | network of a company? Opsec guys would never ack that,
             | there is and always will be malice coming from potentially
             | all angles.
        
             | kyle_grove wrote:
             | Honestly, I think the mode that will actually occur is that
             | incumbent businesses never successfully adopt AI, but are
             | just outcompeted by their AI-native competitors.
        
               | djtango wrote:
               | Yes this is exactly how I see it happening - just like
               | how Amazon and Google were computer-native companies
        
               | joquarky wrote:
               | And Sears had all the opportunity to be Amazon
        
               | red-iron-pine wrote:
               | Sears also did everything it could to annihilate itself
               | while dot-com was happening.
               | 
               | their CEO was a believer of making his departments
               | compete for resources leading to a brutal, dysfunctional
               | clusterfuck. rent seeking behavior on the inside as well
               | as outside.
        
             | ethbr1 wrote:
             | > _I think you don't have widespread adoption until AI
             | takes the form of a plug-and-play "remote employee"._
             | 
             | Exactly. The problem with the AGI-changes-everything
             | argument is that it indirectly requires "plug-and-play"
             | quality AGI to happen _before / at the same time_ as
             | specialized AGI. (Otherwise, specialized AGI will be
             | adopted first)
             | 
             | I can't think of a single instance in which a polished,
             | fully-integrated-with-everything version of a new
             | technology has existed _before_ a capable but specialized
             | one.
             | 
             | E.g. computers, cell phones, etc.
             | 
             | And if anyone points at the "G" and says "That means we
             | aren't talking about specialized in any way," then you
             | start seeing the technological unlikeliness of the dominoes
             | falling as they'd need to for AGI fast ramp.
        
           | markus_zhang wrote:
           | In fact most of the industries out there are still slow and
           | inefficient. Some physicians only accept phone calls for
           | making appointments. Many primary schools only take phone
           | calls and an email could go either way just not their way.
           | 
           | It's just we programmers who want to automate everything.
        
             | graemep wrote:
             | Given how bad some of the apps and websites are I am not
             | sure phone calls are any worse! They are also less prone to
             | data breaches and the like.
        
             | QuadmasterXLII wrote:
             | " only takes phone calls for appointments" is a huge
             | selling point for a physicians office. People are very
             | tired of apps.
        
               | bronco21016 wrote:
               | I'd far prefer a well done app. It's so frustrating doing
               | a back and forth of dates when trying to make an
               | appointment.
        
               | markus_zhang wrote:
               | Yeah maybe we programmers should start doing that too.
               | Why do we use Teams, Slack or even emails?
               | 
               | We should submit our code to a mainframe and everyone is
               | going to improve their skills too.
        
               | dboreham wrote:
               | On punched cards.
        
             | semi-extrinsic wrote:
             | Today I spent 55 minutes in a physical store trying to get
             | a replacement for two Hue pendant lights that stopped
             | working. The lights had been handed in a month ago and
             | diagnosed as "can't be repaired" two weeks ago. All my
             | waiting time today was spent watching different employees
             | punching a ridiculous amount of keys on their keyboards,
             | and having to get manual approval from a supervisor (in
             | person) three times. I am now successfully able to wait 2-6
             | weeks for the replacement lights to arrive, maybe.
             | 
             | When people say AI is going to put people out of work, I
             | always laugh. The people I interacted with today could have
             | been put out of work by a well-formulated shell script 20
             | years ago.
        
           | mattlondon wrote:
           | But why are these sort of orgs slow and useless? I don't
           | think it is because they have made a conscious decision to do
           | so - I think it is more than they do not have the resources
           | to do anything else. They can't afford to hire in huge teams
           | of engineers and product managers and researchers to
           | modernize their systems.
           | 
           | If suddenly the NHS had a team of "free" genuinely phd-level
           | AGI engineers working 24/7 they'd make a bunch of progress on
           | the low-hanging fruit and modernize and fix a whole bunch of
           | stuff pretty rapidly I expect.
           | 
           | Of course the devil here is the requirements and integrations
           | (human and otherwise). AGI engineers might be able to churn
           | out fantastic code (some day at least), but we still need to
           | work out the requirements and someone still needs to make
           | decisions on how things are done. Decision making is often
           | the worst/slowest thing in large orgs (especially public
           | sector).
        
             | djtango wrote:
             | IMO it comes from inertia. People at the top are not
             | digital-native. And they're definitely not AI-native.
             | 
             | So you're retrofitting a solution onto a legacy org. No one
             | will have the will to go far enough fast enough. And if
             | they didn't have the resources to engineer all these
             | software migrations who will help them lead all these AI
             | migrations?
             | 
             | Are they going to go hands off the wheels? Who is going to
             | debug the inevitable fires in the black box that has now
             | replaced all the humans?
        
               | ghaff wrote:
               | And many of the users/consumers are not digital-native
               | either. My dad is not going to go to a website to make
               | appointments or otherwise interact with the healthcare
               | system.
        
             | typewithrhythm wrote:
             | It's not a resource problem; everyone inside the system has
             | no real incentive to do anything innovative; improving
             | something incrementally is more likely to be seen as extra
             | work by your colleagues and be detrimental to the person
             | who implemented it.
             | 
             | What's more likely is a significantly better system is
             | introduced somewhere, NHS can't keep up and is rebuilt by
             | an external. (Or more likely it becomes a inferior system
             | of a lesser nation as the UK continues its decline).
        
               | qgin wrote:
               | I think this is where the AGI employee succeeds where
               | other automation doesn't. The AGI employee doesn't
               | require the organization to change. It's an agent that
               | functions like a regular employee in the same exact
               | system with all of its inefficiencies, except that it can
               | do way more inefficient work for a fraction of the cost
               | of a human.
        
               | _heimdall wrote:
               | Assuming we get to AGI and companies are willing to
               | employ them in lieu of a human employee, why would they
               | stop at only replacing small pieces of the org rather
               | than replacing it entirely with AGI?
               | 
               | AGI, by most definitions at least, would be better than
               | most people at most things. Especially if you take
               | OpenAI's definition, which boils it down only to economic
               | value, a company would seemingly always be better off
               | replacing everything with AGI.
               | 
               | Maybe more likely. AGI would just create superior
               | businesses from scratch and put human companies out if
               | business.
        
               | sevensor wrote:
               | This is a huge selling point, and it will really
               | differentiate the orgs that adopt it from those who
               | don't. Eventually the whole organization will become as
               | inscrutable as the agents that operate it. From the
               | executive point of view this is indistinguishable from
               | having human knowledge workers. It's going to be
               | interesting to see what happens to an organization like
               | that when it faces disruptive threats that require rapid
               | changes to its operating model. Many human orgs fall
               | apart faced by this kind of challenge. How will an extra
               | jumbo pattern matcher do?
        
               | mplewis wrote:
               | What you are describing is science fiction and is not
               | worthy of serious discussion.
        
           | Delphiza wrote:
           | As a first order of business, a sufficiently advanced AGI
           | would recommend that we stop restructuring and changing to a
           | new ERP every time an acquisition is made or the CFO changes,
           | and to stop allowing everyone to have their own version of
           | the truth in excel.
           | 
           | As long as we have complex manual processes that even the
           | people following them can barely remember the reason why they
           | exist, we will never be able to get AI to smooth it over. It
           | is horrendously difficult for real people to figure out what
           | to put in a TPS report. The systems that you refer to need to
           | be engineered out or organisations first. You don't need AI
           | for that, but getting rid of millions of excel files is
           | needed before AI can work.
        
             | kjellsbells wrote:
             | I dont know that getting rid of those wacky Excel sheets is
             | a prerequisite to having AI work. We already have people
             | like Automation Anywhere watching people hand carve their
             | TPS reports so that they can be recreated mechanistically.
             | Its a short step from feeding the steps to a task runner to
             | feeding them to the AI agent.
             | 
             | Paradigm shifts in the technology do not generally occur
             | simultaneously with changes in how we organize the work to
             | be done. It takes a few years before the new paradigm backs
             | into the workflow and changes it. Lift and shift was the
             | path for several years before cloud native became a thing,
             | for example. People used iPhone to call taxi companies,
             | etc.
             | 
             | It would be a shame to not take the opportunity to tear
             | down some old processes, but, equally, sometimes
             | Chesterton's fence is there for good reason.
        
           | llm_trw wrote:
           | Counterpoint: the PC.
           | 
           | The minicomputer revolution was meant to replace all the big
           | iron in the basement with computers shared by teams. This
           | lasted a decade until we got computers meant for one person
           | and we've used that format of computation for nearly 50 years
           | now.
           | 
           | Everyone is talking about how AI will replace people.
           | 
           | It won't.
           | 
           | AI without HI is useless. However, HI with AI is much better
           | at handling all the bullshit office work that needs to get
           | done--anyone who doesn't understand this is either an idiot,
           | a troglodyte, or already has an expendable army of minions
           | doing their work.
           | 
           | The surge in AI demand won't be top-down but bottom-up. That
           | stupid office birthday wish card being passed around? I can
           | Shakespeare the motherfucker. And that email to the big boss
           | telling him the project is doomed and that he needs a compass
           | to find his own ass? Let's ask R1.
           | 
           | >My boss is a moron who can't find his ass without a compass.
           | His latest tech initiative will cost us millions and make the
           | best staff leave. Write a professional letter that covers
           | those points without being harsh.
           | 
           | ---
           | 
           | Subject: Request for Review of Upcoming [Tech Initiative]
           | 
           | Dear [Recipient Name/Team Name],
           | 
           | I hope this message finds you well. I wanted to share some
           | thoughts regarding our upcoming [Tech Initiative Name], as I
           | believe open dialogue will ensure its success while aligning
           | with our team's strengths and long-term goals.
           | 
           | While the initiative's intent to innovate is commendable,
           | I've observed several potential challenges that may impact
           | its effectiveness:
           | 
           | Financial Impact: Based on preliminary analysis, the
           | projected costs appear to be significantly higher than
           | initially estimated. A detailed cost-benefit review or phased
           | rollout might help mitigate financial risk while allowing us
           | to test feasibility.
           | 
           | Team Retention Concerns: Many of our top performers have
           | expressed reservations about the initiative's current
           | structure, particularly around [specific pain point, e.g.,
           | workflow disruption, lack of clarity]. Retaining their
           | expertise will be critical to execution, and their insights
           | could refine the plan to better address on-the-ground needs.
           | 
           | To ensure alignment with both our strategic objectives and
           | team capacity, I respectfully suggest:
           | 
           | Conducting a collaborative risk assessment with department
           | leads.
           | 
           | Piloting the initiative in a controlled environment to gather
           | feedback.
           | 
           | Hosting a forum for staff to voice concerns/solutions pre-
           | launch.
           | 
           | I'm confident that with adjustments, this project can achieve
           | its goals while preserving morale and resources. Thank you
           | for considering this perspective--I'm eager to support any
           | steps toward a sustainable path forward.
           | 
           | Best regards,
        
             | nrclark wrote:
             | To be honest, that kind of sounds like a dystopian hell:
             | chatGPT writing memos because we can't be arsed, and the
             | reading the same memos because neither can the recipient.
             | Why even bother with it?
        
               | llm_trw wrote:
               | It is heaven.
               | 
               | With a well working rag system you can find the reason
               | why any decision was made so long as it was documented at
               | some point somewhere. The old share point drives with a
               | billion unstructured word documents starting from the
               | 1990s is now an asset.
        
         | heresie-dabord wrote:
         | Is this the transcript of the interview (podcast) with
         | Dwarkesh?
         | 
         | https://www.dwarkeshpatel.com/p/satya-nadella
         | 
         | Because if so,
         | 
         | > He doesn't necessarily believe in fast takeoff AGI (just yet)
         | 
         | the term "fast takeoff AGI" does not appear in the transcript.
        
           | qgin wrote:
           | Some paraphrasing on my part, but what he does say is at odds
           | with fast takeoff AGI. He describes AI as a tool that
           | gradually changes human work at a speed that humans adapt to
           | over time.
        
         | lolinder wrote:
         | This is a very refreshing take.
         | 
         | Our current intellectual milieu is largely incapable of nuance
         | --everything is black or white, on or off, good or evil. Too
         | many people believe that the AI question is as bipolar as every
         | other topic is today: Will AI be godlike or will it be
         | worthless? Will it be a force for absolute good or a force for
         | absolute evil?
         | 
         | It's nice to see someone in the inner circles of the hype
         | finally acknowledge that AI, like just about everything else,
         | will almost certainly not exist at the extremes. Neither God
         | nor Satan, neither omnipotent nor worthless: useful but not
         | humanity's final apotheosis.
        
         | lenerdenator wrote:
         | > human messiness will slow implementation
         | 
         | If by "messiness" he means "the general public having massive
         | problems with a technology that makes the human experience both
         | philosophically meaningless and economically worthless", then
         | yeah, I could absolutely see that slowing implementation.
        
         | adverbly wrote:
         | > * He doesn't necessarily believe in fast takeoff AGI (just
         | yet)
         | 
         | This is so based... I would probably have given slow take off a
         | 1% chance of happening 10 years ago, but today I'd put that
         | somewhere like 30%.
        
         | mikesurowiec wrote:
         | I expect data centers will become more expensive precisely
         | because everyone is building at the same time. Supply chain
         | crunch
        
           | kridsdale1 wrote:
           | Temporary. During their operating and depreciating long tail
           | phase the over supply will drive down costs for users. Like
           | fiber cables.
        
       | toomuchtodo wrote:
       | _Microsoft CEO Admits That AI Is Generating Basically No Value_ -
       | https://futurism.com/microsoft-ceo-ai-generating-no-value
       | 
       | Bit of a click bait title, but it certainly seems like the
       | realization is setting in that the hype has exceeded near term
       | realistic expectations and some are walking back claims (for
       | whatever reason; honesty, derisking against investor securities
       | suits, poor capital allocation, etc).
       | 
       | Nadella appears to be the adult in the room, which is somewhat
       | refreshing considering the broad over exuberance.
        
         | bognition wrote:
         | Time to sort NVDA?
        
           | toomuchtodo wrote:
           | A fellow degenerate gambler I see. The market can remain
           | irrational longer than you can remain solvent, trade with
           | caution. Being early is the same as being wrong.
        
             | short_sells_poo wrote:
             | Highly regarded people unite :D
             | 
             | More seriously though: unless you have privileged
             | information or have done truly extensive research, do not
             | short stocks. And if you do have privileged information,
             | still don't short stocks because unless you have enough
             | money to defend yourself against insider trading like Musk
             | and it's ilk, it's not going to be worth it.
             | 
             | It's perfectly reasonable to determine that a particular
             | high growth stock is not going to perform as well going
             | forward, in which case I'd shift allocation to other,
             | better candidates.
             | 
             | Generally, being long equities is a long term positive
             | expected value trade. You don't have to time the market,
             | just be persistent. On the other hand, as you correctly
             | alluded to, shorting equities requires decently precise
             | timing, both on entry and exit.
        
             | bognition wrote:
             | A common hypothesis for why Nvidia is so hot is because
             | they have an effective monopoly on the hardware to train AI
             | models and it requires a crap ton of hardware.
             | 
             | With DeepSeek it's been demonstrated you can get pretty
             | damn for a lot cheaper. I can only imagine that there are
             | tons of investors thinking that it's better to invest their
             | dollars in undercutting the costs of new models vs
             | investing billions in hardware.
             | 
             | The question is, can Nvidia maintain their grip on the
             | market in the face of these pressures. If you think they
             | can't, then a short position doesn't seem like that big of
             | a gamble.
        
               | rangestransform wrote:
               | it's effectively a software moat wrt. GPU programming,
               | there's nothing stopping AMD from catching up besides
               | insufficiently deep pockets and engineering culture
        
               | hedora wrote:
               | Not sure why AMD's software side gets so much flack these
               | days. For everything other than AI programming, their
               | drivers range from fine to best in class.
               | 
               | I have an AMD minipc running linux that I use for steam
               | gaming, light development, etc. The kernel taint bit is
               | off.
               | 
               | There is one intel device on the pci/usb buses: wifi/bt,
               | and it's the only thing with a flaky driver in the
               | system. People have been complaining about my exact issue
               | for something like 10 years, across multiple product
               | generations.
        
               | rangestransform wrote:
               | Nobody who controls the purse strings cares about the
               | kernel taint bit if their model doesn't train, if they're
               | burning developer time debugging drivers, if they have to
               | burn even more dev time switching off of cuda, etc.
               | 
               | If AMD really cared about making money, they would've
               | sent MI300s to all of the top CS research institutions
               | for free and supported rocm on every single product.
               | Investing any less than nvidia, the trillion dollar
               | behemoth, is just letting big green expand their moat
               | even more.
        
               | mixmastamyk wrote:
               | A short position is always a gamble, because you could
               | lose _more_ than everything.
        
           | dpflan wrote:
           | Using "bubble" sort? ;)
        
             | jeyoor wrote:
             | The combination of high and climbing price to earnings
             | ratios for a smaller subset of tech firms, outsize retail
             | investment in tech (cloaked by people buying crypto), and
             | macro environment factors like high interest rates
             | stimulating risky lending has me swapping this bubble
             | toward the top of the list.
             | 
             | See further: https://www.morningstar.com/news/marketwatch/2
             | 0250123167/six...
        
             | HPsquared wrote:
             | Bubble sort is very resource-hungry...
        
           | dijit wrote:
           | I think its probably foolish to short nvidia until theres at
           | least echoes of competition.
           | 
           | AMD wants it to be them, but the reality is that the moat is
           | wide.
           | 
           | The closest for AI is Apple, but even then, I'm not certain
           | its a serious competitor; especially not in the datacenter.
           | 
           | For Gaming there's practically no worthwhile competition.
           | Unreal Engine barely even fixes render bugs for Intel and AMD
           | cards, and I know _this_ for fact.
           | 
           | FD: I'm recently holding shares in nvidia due to the recent
           | fluctuation, and my own belief that the moat is wider than we
           | care to believe, as mentioned.
        
           | suraci wrote:
           | it's very dangerous, shorting in a market where a gamma
           | squeeze can occur is extremely dangerous
           | 
           | other markets s like Taiwan are preferable
        
         | unsupp0rted wrote:
         | Nadella is looking for the world to grow at 10% due to AI
         | enhancement, like it did during the industrial revolution.
         | 
         | That seems like a low bar because it already is- it's just not
         | equally distributed yet.
         | 
         | My own productivity has grown far more than 10% thanks to AI,
         | and I don't just mean in terms of dev. It reads my bloodwork
         | results, speeds up my ability to repair a leak in my toilet
         | tank, writes a concise "no I won't lend you money; I barely
         | know you" message... you name it.
         | 
         | Normally all of those things would take much longer and I'd get
         | worse results on my own.
         | 
         | If that's what I can do at the personal level, then surely 10%
         | is an easily-achievable improvement at the enterprise level.
        
           | toomuchtodo wrote:
           | You should be curious _why_ Nadella is looking for the world
           | to grow at that rate. That's because he wants Microsoft to
           | grow into $500B /year in revenue by 2030, and it will be
           | challenging without that economic growth to grow into that
           | target. You can grow into a TAM, try to grow or broaden the
           | TAM, or some combination of both. Without AI, it is unlikely
           | the growth target can be met.
           | 
           | https://www.cnbc.com/2023/06/26/microsoft-ceo-nadella-
           | said-r...
        
           | thagsF wrote:
           | And Henry Ford would reply: "Who is going to buy the cars?"
           | 
           | We have been living in a fake economy for quite some time
           | where money is printed and distributed to the "tech" sector.
           | Which isn't really "tech", but mostly entertainment (YouTube,
           | Netflix, Facebook, ...).
           | 
           | Growth of the economy means nothing. The money that has been
           | printed goes to shareholders. What the common man gets is
           | inflation and job losses.
           | 
           | If you want to grow the real economy, build houses and reduce
           | the cost of living.
        
             | coliveira wrote:
             | > If you want to grow the real economy, build houses and
             | reduce the cost of living.
             | 
             | Yes, I wonder why it is so hard for Western countries to
             | understand that there's no future in a place where housing
             | is more expensive than your average salary. If may look
             | cool for a few years until most people have left or are
             | living on the streets.
        
               | tonyhart7 wrote:
               | "there's no future in a place where housing is more
               | expensive than your average salary."
               | 
               | don't get me wrong, everyone want cheaper housing but not
               | their house
        
               | sudosysgen wrote:
               | I for one would love it. If I have to sell housing then I
               | have to buy housing, it's not a benefit to me unless I
               | reduce my quality of life.
        
               | bufferoverflow wrote:
               | Plenty of housing. The problem is, people want cheap
               | housing in places where everyone wants to live. I don't
               | think that will happen any time soon.
        
               | coliveira wrote:
               | This is a non-sense that spreads because of North
               | American style of housing. If you're talking about
               | sprawling suburban houses then you're right. But big
               | cities have provided reasonable housing for lots of
               | workers for centuries. The only thing you need is to
               | build more apartments in the cities that have an excess
               | of job positions.
        
               | bufferoverflow wrote:
               | No, you can't just "build more apartments". For these new
               | inhabitants you will need more grocery stores, more
               | bus/subway stops and overall transportation, more
               | hospitals, more firefighters, more restaurants, more
               | gyms, more tennis courts, more of everything.
        
               | coliveira wrote:
               | Of course. Big cities with all this infrastructure are
               | nothing new. They existed in the past and are big in
               | alive in Asia and other parts of the world. Only in North
               | America we have this bizarre world where it seems like a
               | strange thing to build cities and provide infrastructure
               | for workers!
        
               | hollandheese wrote:
               | There is no cheap housing anywhere in the entire state of
               | California. In the worst and poorest parts of the state
               | where are basically no jobs or anything the housing is
               | still way more expensive than anyone can afford.
        
               | bufferoverflow wrote:
               | So move out of there. Plenty of cheap housing in the
               | country.
        
             | sharpshadow wrote:
             | A friend tried to tell me China has a real estate crisis,
             | because the value of houses is dropping due to building to
             | many and people are losing on their investments. I asked
             | him if he is sure cheap and available housing is a crisis.
        
               | treis wrote:
               | Everyone in the industry losing their shirts and going
               | out of business is a crisis. It happened 15 years ago in
               | the US and we still haven't made it back to mid 90s level
               | of housing starts.
        
           | threeseed wrote:
           | Going to safely assume you've never worked at an enterprise.
           | 
           | Because improving the productivity of every employee by 10%
           | does not translate to the company being 10% more productive.
           | 
           | Processes and systems exist precisely to slow employees down
           | so that they comply with regulations, best practices etc
           | rather than move fast and break things.
           | 
           | And from experience with a few enterprise LLM projects now
           | they are a waste of time. Because the money/effort to fix up
           | the decades of bad source data far exceeds the ROI.
           | 
           | You will definitely see them used in chat bots and replacing
           | customer service people though.
        
           | bbarnett wrote:
           | It also gets all of these things wrong, like not paying
           | attention to models of toilets and quirks for their repair,
           | often speaking with an authoritative voice and deceiving you
           | on the validity of its instructions.
           | 
           | All of the things you site are available via search engines,
           | or better handled with expertise so you know how much of the
           | response is nonsense.
           | 
           | Every time I use AI, it's a time waste.
        
             | unsupp0rted wrote:
             | Every time I contact an enterprise for support, the person
             | I'm talking to gets lots of things wrong too. It takes
             | skepticism on my part and some back and forth to clean up
             | the mess.
             | 
             | On balance AI gets more things wrong than the best humans
             | and fewer things wrong than average humans.
        
               | Eggpants wrote:
               | AI is a lossy data compression technique at best. One can
               | always tell when an AI cheerleader/ex blockchain bro has
               | hitched their financial wagon to this statistic based
               | word vomit grift.
        
               | unsupp0rted wrote:
               | Please elaborate, preferably without breaking HN
               | guidelines about dismissive name-calling
        
               | xienze wrote:
               | The difference is that a human will tell you things like
               | "I think", "I'm pretty sure" or "I don't know" in order
               | to manage expectations. The LLM will very matter-of-
               | factly tell you something that's not right at all, and if
               | you correct them the LLM will go and very confidently
               | rattle off another answer based on what you just said,
               | whether your were telling it the truth or not. If a human
               | acted that way more than a few times we'd stop asking
               | them questions or at least have to do a lot of "trust but
               | verify." LLMs do this over and over again and we just
               | kind of shrug our shoulders and go "well they do pretty
               | good overall."
        
               | smw wrote:
               | I can't count the number of times I've had a support
               | person confidently tell me something that is obviously
               | not applicable to my problem and makes completely flawed
               | assumptions about cs/physics/networking/logic.
               | 
               | I get a lot of correct answers from llms, but sometimes
               | they make shit up. Most of the time, it's some function
               | in a library that doesn't actually exist. Sometimes even
               | the wrong answers are useful because they tell me where
               | to look in the reference docs. Ask it to search the web
               | and cite sources, makes it easier to verify the answer.
               | 
               | I don't appreciate what's going on with AI art and AI
               | generated slop, but the idea that they aren't a useful
               | tool is just wild to me.
        
               | xienze wrote:
               | I'm not saying it's not useful, I'm saying that we hold
               | humans giving us answers to a much higher standard than
               | LLMs.
        
           | suraci wrote:
           | I think the 'grow at 10%' refers to the incremental part of
           | the entire world/market.
           | 
           | during the industrial revolution(steam/electricity/internet),
           | the world was growing, there're trains, cars, netflix
           | 
           | bussiness grown with productivity growing, even so, we lived
           | through 2 world wars and dozens of economic crisis
           | 
           | but now is very different, when you repair the tank with
           | LLM's help, when the labour value of repairers is decreased,
           | there's no addition value are produced
           | 
           | there's a very simple thought experiment abt the result of
           | productivity growing alone:
           | 
           | let's assume robotics become to a extremely high level,
           | everything humen work can be reduced to 1/100 with help of
           | robots, what will happen next?
        
             | ta1243 wrote:
             | > let's assume robotics become to a extremely high level,
             | everything humen work can be reduced to 1/100 with help of
             | robots, what will happen next?
             | 
             | We work 35 hour years instead of 35 hour weeks?
        
               | bcrosby95 wrote:
               | Lol, ever the optimist I see.
        
             | tacomadome wrote:
             | You're describing exactly what happened during both the
             | Industrial Revolution and the advent of computer
             | automation.
             | 
             | Prior to computerization and databases, millions of people
             | were required for filing, typing, and physically
             | transporting messages and information. All of those jobs,
             | entire fields of work were deleted by computerization.
        
               | Earw0rm wrote:
               | Even "computer" was originally a job title. For a person.
        
           | geuis wrote:
           | All I hear is anecdotal statements from people claiming LLMs
           | have made them some percent more productive. Yet few actually
           | say how or demonstrate it.
           | 
           | For the last year, I've tried all sorts of models both as
           | hosted services and running locally with llama.cpp or ollama.
           | I've used both the continue.dev vscode extension and cursor
           | more recently.
           | 
           | The results have been frustrating at best. The user interface
           | of the tools is just awful. The output of any models from
           | Deepseek to quen to Claude to whatever other model is
           | mediocre to useless. I literally highlight some code that
           | includes comments about what I need and I even include long
           | explicit descriptions etc in the prompts and it's just
           | unrelated garbage out every time.
           | 
           | The most useful thing has just been ChatGPT when there's
           | something I need to learn about. Rubber ducking basically.
           | It's alright at very simple coding questions or asking about
           | obscure database questions I might have, but beyond that it's
           | useless. Gotta keep the context window short, or it starts
           | going off the rails every single time.
        
             | infecto wrote:
             | Just in the past couple months there have been a number of
             | "I am a senior/principal engineer and this is how I use
             | LLMs". I would agree that the tools are not optimal yet but
             | every iteration has improved for me.
             | 
             | Maybe whatever language you are coding it or whatever
             | project you are working on is not a good fit? It is an
             | equally perplexing situation for myself when I hear
             | anecdotes like yours which don't align with my experience.
             | The fact that you say everything is garbage calls into
             | question either how you are using the tool or something
             | else.
             | 
             | I can reliably use cursor's composer to reference a couple
             | files, give a bullet list of what we are trying to do and
             | point it to one of the better models and the output is
             | junior engineer level or better output. When I say junior,
             | I mean a junior who has experience with the codebase.
        
               | andy24 wrote:
               | What kinds of projects are you working on? My experience
               | is jot very good with these tools (expanded in a sibling
               | comment).
        
               | infecto wrote:
               | Generally a lot of web-dev which is where I would assume
               | LLMs shine the best. I noted elsewhere but I think it
               | depends a lot on the age of the product and the level of
               | velocity. For early life products where the speed of your
               | velocity matters, I think you can get the most benefit.
               | The more mature the product and the slower the team
               | implements features, the benefits are still measurable
               | but not as high.
        
               | andy24 wrote:
               | Ah yeah, I can totally see how it can be useful for
               | churning put tons of code. Even without copy-paste, just
               | generating a ton of references and rewriting/improving
               | them. Anecdotally, I've tried asking deepseek to review a
               | few files of my code -- it wasn't bad at all, though not
               | without false positives.
        
             | andy24 wrote:
             | I have a similar experience. Tried to use it for real work
             | and got frustrated by the chat's inability to say "I don't
             | know". It's okay for code snippets demonstrating how
             | something can be used (stack overflow essentially), also
             | code reviews can be helpful if doing something for the
             | first time. But they fail to answer questions I'm
             | interested in like "what's the purpose of X".
        
             | ta1243 wrote:
             | > All I hear is anecdotal statements from people claiming
             | LLMs have made them some percent more productive. Yet few
             | actually say how or demonstrate it.
             | 
             | It's very difficult to measure productivity of most people,
             | certainly most people in office jobs, so while you can have
             | a gut feeling that you're doing better, it's no more
             | measurable than pre-AI individual productivity measurement
             | was
        
               | skydhash wrote:
               | It's not really about objective measurements, but
               | practical applications. Like try this in the following
               | manner and compare it to your previous workflow. Sensible
               | advices like the ones found in The Pragmatic Programmer.
        
               | ta1243 wrote:
               | Sure, so it's always going to be annecdotal. That doesn't
               | mean the benefits don't exist, just means they can't be
               | objectively measured. Just like we can't objectively
               | measure the output of a single knowlege worker,
               | especially output on a single day
        
             | alexvitkov wrote:
             | If LLM chatbots are making you vastly more productive in a
             | field, you are in the bottom 20% of that field.
             | 
             | They're still useful tools for exploring new disciplines,
             | but if you're say a programmer and you think ChatGPT or
             | DeepSeek is good at programming, that's a good sign you
             | need to start improving.
        
               | agentultra wrote:
               | This. I shudder to think of the hubris of a programmer
               | who doesn't understand pointers prompting an AI model to
               | generate low-level system code for them. Sure it might
               | generate a program that appears to work. But is that
               | human reading the code qualified to review it and prevent
               | the model from generating subtle, non-obvious errors?
        
               | infecto wrote:
               | If you have to tell others that then perhaps some
               | introspection for yourself might be helpful. Comes across
               | more as denial than constructive commentary.
               | 
               | I do believe the benefit decreases the more senior or
               | familiar the work is but there is still a noticeable
               | benefit and I think it largely depends on the velocity
               | and life cycle of the product. I think you get less
               | benefit the slower the velocity or the more mature of a
               | product. To deny it like in your post is simply being an
               | intellectual minimalist.
        
               | nyeah wrote:
               | I see a gap between "vastly more productive" and
               | "noticeable benefit".
        
               | red-iron-pine wrote:
               | good shoes help me walk a bit faster, and for longer.
               | 
               | they don't let me walk at the pace of a SUV.
               | 
               | AI is like the good shoes. they help, and make many tasks
               | a bit easier. but they can't make me into an SUV.
               | 
               | and if they can, then no programmers will have jobs.
               | which is the end-state of this whole LLM thing as far as
               | I can tell.
        
               | geuis wrote:
               | Again, show your evidence.
               | 
               | You make a polite but still ad hominem "attack" about me
               | instead of addressing my points with demonstrations of
               | evidence.
               | 
               | Make a video or blog article actually showing how your
               | use of LLMs in coding is making you more productive. Show
               | what it's doing to help you that has a multiplier effect
               | on your productivity.
        
               | infecto wrote:
               | I was not replying to you so I hope your comment was not
               | directed at me?
        
               | llm_trw wrote:
               | Linus Trovalds: bottom 20% coder.
               | 
               | https://www.youtube.com/watch?v=VHHT6W-N0ak&pp=ygUMTGludX
               | MgQ...
        
             | strangescript wrote:
             | I think its about scope and expectations. I have had some
             | form of AI code completer in my neovim config for 3 years.
             | It works flawlessly and saves me tons of keystrokes. Sure
             | sometimes it suggests the incorrect completion but I just
             | ignore it and keep coding as if it didn't exist. I am
             | talking about line by line, not entire code blocks, but
             | even that it does well at times.
             | 
             | From what I have seen the people that have the most success
             | have AI building something from scratch using well known
             | tooling (read: old tooling).
             | 
             | The problem is that doesn't immediately help most people.
             | We are all stuck in crap jobs with massive, crusty code
             | bases. Its hard for AI because its hard for everyone.
        
             | llm_trw wrote:
             | I fixed the hinge in my oven by giving perplexity.com the
             | make and problem. I saved an hour on the phone calling
             | people to organise a visit some time in the next week.
             | 
             | Maybe you should stop using the Ai slop tools that don't
             | work?
        
               | sharpshadow wrote:
               | Very likely you would have been as successful without AI
               | to fix your oven hinge yourself, there is tons of content
               | about that online.
        
               | llm_trw wrote:
               | No. I'd already spend 30 Min looking at how to solve it
               | myself. The search on perplexity was a hail marry before
               | I started calling handymen.
        
             | vipshek wrote:
             | I would like to propose a moratorium on these sorts of "AI
             | coding is good" or "AI coding sucks" comments without any
             | further context.
             | 
             | This comment is like saying, "This diet didn't work for me"
             | without providing any details about your health
             | circumstances. What's your weight? Age? Level of activity?
             | 
             | In this context: What language are you working in? What
             | frameworks are you using? What's the nature of your
             | project? How legacy is your codebase? How big is the
             | codebase?
             | 
             | If we all outline these factors _plus_ our experiences with
             | these tools, then perhaps we can collectively learn about
             | the circumstances when they work or don't work. And then
             | maybe we can make them better for the circumstances where
             | they're currently weak.
        
               | azemetre wrote:
               | I feel like diet as an analogy doesn't work. We know that
               | the only way to lose weight is with a caloric deficit. If
               | you can't do this, it doesn't matter what you eat you
               | won't lose weight. If you're failing to lose weight
               | because of a diet you are eating too much, full stop.
               | 
               | Whereas measuring productivity and usefulness is way more
               | opaque.
               | 
               | Many simple software systems are highly productive for
               | their companies.
        
             | xienze wrote:
             | I agree with the other commenter that said if you're
             | "vastly" more productive as a developer due to AI, you
             | probably weren't that good to begin with. Otherwise, please
             | provide concrete examples.
             | 
             | Myself, I do find it quite useful in a few respects. First
             | and foremost, as a "better Google/StackOverflow." If
             | something's not working, I can describe my exact scenario
             | and usually get pointed in the right direction. Sometimes
             | the LLM just wastes my time by very confidently telling me
             | some function/library that solves my exact problem exists
             | when in fact it doesn't.
             | 
             | Second, IntelliJ's local LLM is sort of a smarter
             | autocomplete. It makes some outright wrong suggestions, but
             | when there's areas where I have to do a lot of repetitive
             | tasks that follow a simple pattern (like for instance,
             | mapping fields from one type of object to another), it does
             | a pretty good job of making correct suggestions. I
             | definitely appreciate it but it's certainly not doing
             | things like writing a significant portion of code in my
             | style.
        
             | vel0city wrote:
             | I've been using Amazon Q Developer as it was provided and
             | approved by my employer. It has been pretty good with
             | Python codebases, Kubernetes configurations, and (not
             | surprisingly) CDK/Cloudformation templates. I can pretty
             | much just ask it "here's my python script, make everything
             | I need to run it as a lambda, hook that lambda up to x, it
             | should run in a vpc defined in this template over here",
             | and it'll get all that stuff put together and its normally
             | pretty solid code it generates. It seems to pull in a lot
             | of the context of the project I have open. For instance, I
             | can say "it should get those values from the outputs in
             | other-cf-template.yml" and it knows the naming schemes and
             | what not across templates, even if it didn't generate those
             | templates.
             | 
             | I might go back and tweak some stuff, add some extra tags
             | and what not, but often its pretty good at doing what I
             | ask.
             | 
             | Sometimes its suggestions aren't what I was really wanting
             | to do in my codebase, a handful of times it has made up
             | methods or parameters of even well-known libraries. But
             | usually, its suggestions are better than a basic
             | IntelliSense-style autocomplete at least in my experiences.
             | 
             | I haven't used many of the other developer assistant
             | plugins like say GitHub Copilot. I couldn't really say
             | which is better or worse. But I do think using Q Developer
             | has made me faster in many tasks.
             | 
             | I wouldn't expect a tool that doesn't have access to the
             | context of my editor and the files I have open to be very
             | useful for actually coding. There's a lot of context to
             | understand in even a basic application. If you're just
             | asking a locally running app in ollama "give me a method to
             | do x", don't be surprised if it doesn't know everything
             | else happening in your app. Maybe it'll give you a halfway
             | decent example of doing something, but devoid of how it
             | actually plugs in to whatever you're making it might be
             | entirely worthless.
        
             | F7F7F7 wrote:
             | Seriously. It's like half of the people in this thread are
             | living in a completely different world.
             | 
             | And this is coming from someone who uses LLMs daily at the
             | subscription, API (vscode and 3 nextjs apps) and local
             | level. I have a custom langchain stack, prompt repo, you
             | name it. And regardless of how little or how much I use
             | what I have, or what soup de jour prompt or process (from
             | Keep it simple to Prompt enhancers) I can't say it's made a
             | meaningful difference in my life. Even with all of the
             | customization and planning.
             | 
             | It's a great search engine though.
        
               | Earw0rm wrote:
               | Would it look like such a good search engine if the
               | actual search engines hadn't progressively broken
               | themselves over the last 15 years?
               | 
               | I swear half the time when I use it to look up the
               | nuances of system API stuff, it's replaying forum,
               | mailing list or Stackoverflow conversations that Google
               | ought to be able to find but somehow can't.
        
           | jononor wrote:
           | What is your personal productivity metric by which you have
           | more than 10% increase? More money earned, less money spent,
           | fewer working hours for same income, more leisure time? It
           | needs to be something in aggregate to mean something related
           | to what Nadella meant. There are many individual task which
           | LLM system can help with. But there is also may ways for
           | those gains to fail to aggregate into large overall gains.
           | Both on personal level and on corporate, and economy wide
           | level.
        
           | maigret wrote:
           | Who suddenly knows how to measure developer productivity? I
           | thought this was impossible.
        
           | toberoni wrote:
           | Annual growth rates during the Industrial Revolution where
           | way lower than 10%. In the 18th century it was well below 1%,
           | during the 19th century it was on average at 1-1.5% (the
           | highest estimates go up to 3% annual growth for certain
           | decades close to 1900).[0][1][2]
           | 
           | Some regions or sectors might have experienced higher growth
           | spurts, but the main point stands: the overall economic
           | growth was quite low by modern standards - even though I
           | don't think GDP numbers alone adequately describe the huge
           | societal changes of such sustained growth compared to
           | agrarian cultures before the Industrial Revolution.
           | 
           | [0] https://web.archive.org/web/20071127032512/http://minneap
           | oli... [1] https://www.bankofengland.co.uk/explainers/how-
           | has-growth-ch... [2]
           | https://academic.oup.com/ereh/article/21/2/141/3044162
        
           | deadbabe wrote:
           | Unless you're producing 10% more money with AI you're not
           | doing shit.
        
           | mvandermeulen wrote:
           | How close do we need to be for you to help a brother out?
           | Feeling seriously unsupp0rted right now
        
         | bsenftner wrote:
         | The "elephant in the room" is that AI is good enough, it's
         | revolutionary in fact, but the issue now is the user needs more
         | education to actually realize AI's value. No amount of uber-
         | duper AI can help an immature user population lacking in
         | critical thinking, which in their short shortsightedness seek
         | self destructive pastimes.
        
           | geuis wrote:
           | It's not "good enough", it's mostly overhyped marketing
           | garbage. LLM models are mostly as good as they're going to
           | get. It's a limitation of the technology. It's impressive at
           | what has been done, but that's it.
           | 
           | It doesn't take billions of dollars and all human knowledge
           | to make a single human level intelligence. Just some hormones
           | and timing. So LLMs are mostly a dead end. AGI is going to
           | come from differenst machine learning paradigms.
           | 
           | This is all mostly hype by and for investors right now.
        
             | literalAardvark wrote:
             | LLM direct response models are quite mature, yes (4o)
             | 
             | LLM based MoE architectures with some kind of reasoning
             | process ( Claude 3+, o series, R1, grok 3 with thinking ),
             | are the equivalent of v0.2 atm, and they're showing a lot
             | of promise.
        
             | infecto wrote:
             | It's pretty good for a whole class of problems that humans
             | currently do.
        
           | rsynnott wrote:
           | "You're holding it wrong" only goes so far.
        
           | petee wrote:
           | I spent more time yesterday trying to get "AI" to output
           | runnable code, and retyping, than if I had just buckled down
           | and done it myself.
           | 
           | But I don't think you can blame users if they're given an
           | immature tool, when it really is on companies to give us a
           | product that is obvious to use correctly.
           | 
           | Its not an exact analogy, but I always like to think of how
           | doors are designed - if you have to put a sign on it, its a
           | bad design. A well designed door requires zero thought, and
           | as such, if "AI" usage is not obvious to 99% of the
           | population, its probably a bad design.
        
             | bsenftner wrote:
             | Think of it like you're talking to someone so smart that
             | they answer before you're finished explaining, and get the
             | general idea wrong, or seem really pedantic and your
             | misplaced use of a past tense verb that should have been
             | active tense causes then to completely reinterpret what
             | you're talking about. Think of our current LLMs like idiot
             | savants, and trust them as much.
             | 
             | I don't use AI to write code if that code is not short and
             | self contained. It's great at explaining code, great at
             | strategy and design about code. Not so much at actually
             | implementing code larger than 1/4 to 1/3rd it's output
             | context window. After all, it's not "writing code", it's
             | statistically generating tokens that look like code it's
             | seen before. It's unknown if the training code in which the
             | LLM is statistically generating a reply actually ran, it
             | could have been pseudo code explaining that computer
             | science concept, we don't know.
             | 
             | People seem to want a genie that does what they are
             | thinking, and that is never going to work (at least with
             | this technology.) I'm really talking about effective
             | communications, and understanding how to communicate with a
             | literal unreal non-human construct, a personality theater
             | enhanced literary embodiment of knowledge. It's subtle, it
             | requires effort on the user's side, more than it would if
             | one were talking to a human expert in the area of knowledge
             | you operate. You have to explain the situation so the AI
             | can understand what you need, and developers are surprising
             | bad at that. People in general are even worse at
             | explaining. Implied knowledge is rampant in developer
             | conversation, and an LLM struggles with ambiguity, such as
             | implied references. Too many same acronyms in different
             | parts of tech and science. It does work, but one really
             | needs to treat LLMs like idiot savants.
        
         | mrtksn wrote:
         | IMHO anyone who started using AI seriously:
         | 
         | 1) Wouldn't want to go back
         | 
         | 2) Wouldn't believe that it's about to replace human
         | intellectual work
         | 
         | In other words AI got advanced enough to do amazing things but
         | not 500B or T level of amazing and people with the money are
         | not convinced that it will be anytime soon.
        
           | righthand wrote:
           | What is using AI seriously?
           | 
           | I've tried to use it as a web search replacement and often
           | the information is generic or tells me what I already know or
           | wrong.
           | 
           | I've used a code suggestions variant long before OpenAI hype
           | started and while sometimes useful, rarely is it correct or
           | helpful on getting over the next hurdle.
           | 
           | Any code from my coworkers is now just AI slop they glanced
           | over once. Then I spend a long time reviewing and fixing
           | their code.
           | 
           | I really don't find spending time writing long form questions
           | so a bot can pretend to be human all that time saving,
           | especially if I have to clarify or reword it to a specific
           | "prompt-engineer" quality sentence. I can usually find the
           | results faster typing in a few keywords and glancing at a
           | list of articles. My built in human speed reading can
           | determine if what I need is probably in an article.
           | 
           | LLM seriousness has made my job more difficult. I would
           | prefer if people did go back.
        
             | mrtksn wrote:
             | In my case its coding real world apps that people use and
             | pay money for. I no longer personally type most of my code,
             | Instead I describe stuff or write pseudo code that LLMs end
             | up converting into the real thing.
             | 
             | It's very good at handling the BS part of coding but also
             | its very good at knowing things that I don't know. I
             | recently used it to hack a small bluetooth printer which
             | requires its own iOS app to print, using DeepSeek and
             | ChatGPT I was able to reverse engineer the printer
             | communication and then create an app that will print
             | whatever I want from my macOS laptop.
             | 
             | Before AI I would have to study how Bluetooth works now I
             | don't have to. Instead, I use my general knowledge of
             | protocols and communications and describe it to the machine
             | and I'm asking for ideas. Then I try things and ask the
             | stuff that I noticed but I don't understand, then I figure
             | out how this particular device works and then describe it
             | to the machine and ask it to generate me code that will do
             | the thing that I discovered. LLMs are amazing at filling
             | the gaps in a patchy knowledge, like my knowledge of
             | Bluetooth. Because I don't know much about Bluetooth, I
             | ended up creating a CRUD for Bluetooth because that's what
             | I needed when trying to communicate and control my
             | bluetooth devices(it's also what I'm used to from Web
             | tech). I'm bit embarrassed about it but I think I will
             | release it commercially anyway.
             | 
             | If I have a good LLM under my hand, I don't have to know
             | specialised knowledge on frameworks or tools. General
             | understanding of how things works and building up from
             | there is all I need.
             | 
             | It's like a CNC machine but for coding.
        
               | righthand wrote:
               | I see, for single operator, no customers products it
               | works nicely. You may find you use it less and less and
               | will actually require that Bluetooth knowledge eventually
               | as you grow a product.
               | 
               | LLMs so far seem to be good at developing prototype apps.
               | But most of my projects already have codegen and
               | scaffolding tools so I guess I don't get that use out of
               | them.
               | 
               | I predict that once you release your embarrassing app,
               | you will find all the corner cases and domain secrets
               | come rearing out with little ability of the LLM to help
               | you (especially with Bluetooth).
        
               | mrtksn wrote:
               | The Bluetooth app thing is just an example of LLMs
               | helping me build something I don't have beyond-basics
               | knowledge of.
               | 
               | For other stuff, I still find it very useful because why
               | would I bother to code something non-novel when I can
               | just tell the LLM what I need?
               | 
               | For example, if I need a code that finds the device that
               | given characteristics belongs(bluetooth stuff, again) to
               | I can just tell the LLM to write it for me. It doesn't
               | take a genius to write such a code, its elemental stuff
               | and I would rather not spend my working memory on
               | remembering the structures and names of variables. I
               | copy+paste the current class that handles the bluetooth
               | comms, tell it that I need a function for sending data to
               | the printer and it gives me back the result. There's no
               | art in writing such a code, its standard code for an API
               | and I would prefer not to bother with it.
        
               | eitally wrote:
               | You seem to be overestimating the quality of a many
               | production software products.
        
               | righthand wrote:
               | Don't worry I am not. I understand that most prod
               | deployed softwares are prototypes before LLMs came
               | around.
        
               | kamranjon wrote:
               | "Before AI I would have to study how Bluetooth works now
               | I don't have to."
               | 
               | And
               | 
               | "It's very good at handling the BS part of coding..."
               | 
               | This is the part that I think is difficult in a team
               | situation.
               | 
               | Learning and understanding _is_ the important part, and
               | certainly isn't BS.
               | 
               | I understand that it really can make it seem like
               | velocity has increased when you really are shipping
               | things that more or less "work", but it's really a good
               | practice to understand your code.
               | 
               | I've had to spend a significant amount of time fixing
               | work that was admittedly generated using AI by other
               | engineers, and I really fear engineers are beginning to
               | trade deep understanding for the high of getting
               | something that "works" with little effort.
               | 
               | It might "work" but you might be ignoring the work
               | everyone around you is doing to clean up your brittle
               | code that doesn't scale and wasn't thought through at
               | inception.
        
               | mrtksn wrote:
               | It is effective because you can spend your mental energy
               | on the things that matter, things that make difference.
               | 
               | Code quality actually doesn't matter when you remove the
               | human from the loop as long as it works correctly because
               | it becomes something made by a machine to be interpreted
               | by a machine.
        
               | kamranjon wrote:
               | Code isn't a binary scale of works or doesn't - there is
               | inefficient code and insecure code and everything else in
               | between that still technically "works" - but a lack of
               | understanding will eventually cause these "working"
               | solutions to catch up to you.
        
               | mrtksn wrote:
               | You can always revisit that part of code if it doesn't
               | perform. For vast majority of code running on consumer
               | devices there's no difference between smart
               | implementation and mediocre implementation. LLMs are
               | great at being mediocre by default.
               | 
               | As for security, that mostly stems from the architecture.
               | LLMs mediocracy also helps with following industry
               | conventions and best practices.
               | 
               | In my case I never get the code being written at once,
               | instead I make LLMs write pieces that I put together
               | myself. Never got used to copilot or Cursor, I feel in
               | control only with the chat interface.
        
               | smw wrote:
               | Oh come on, I'm not an "AI believer", but it regularly
               | does things for me like write complex SQL queries that I
               | can then verify are correct. Just something like that
               | will often save me 20-40 minutes over doing it manually.
               | There is _something_ there, even if it's not going to
               | replace the workforce anytime soon.
        
               | saturn8601 wrote:
               | You have an entirely valid worry and I get a bit scared
               | at my use of AI because of this. I fear that dev jobs
               | might go away or become third world only jobs like
               | electronics manufacturing but in the mean time its scary
               | how much it atrophies your mind. At the same time, it has
               | opened up a universe of answers to questions I wouldn't
               | normally ask because the bar was too high. Everyone seems
               | to have their own unique stories.
               | 
               | For example just today, I dumped a crash log from the Mac
               | version of Microsoft Remote Desktop into it. This damn
               | app locks up 10 times a day for me causing a "Force Quit"
               | event and subsequent crash dump to be generated. Normally
               | what can I do with that crash dump other than send it off
               | to Apple/Microsoft? It identified where it thought the
               | crash was coming from: excessive right clicking causing
               | some sort of foundational error in their logic. Avoiding
               | right clicking has solved the issue for me. Now that I
               | write this out, I could have spent hours upon hours
               | finding a needle in a haystack and that would probably
               | made me a better developer but the bar is too high, there
               | is too much other work I have to get done than to chase
               | this. Instead I would have just lived with it. Now I have
               | some closure at least.
               | 
               | Again it seems like everyone has got their own unique
               | stories. Is AI taking everything over? Not yet. Can I go
               | back to pre-AI? No, its like going back to Windows 95.
        
               | rurp wrote:
               | The only part I would quibble with is the fear that
               | superficial AI generated code becomes widespread. It's
               | not that I think this won't happen, and I wouldn't want
               | it on my team, but I think it could actually increase
               | demand for competent software engineers.
               | 
               | I got into coding about a decade ago when cheap
               | outsourcing had been all the rage for a number of years.
               | A lot of my early experience was taking over very poorly
               | written apps that had started off with fast development
               | and then quickly slowed down as all of the sloppy
               | shortcuts built up and eventually ground development to a
               | halt. There's a decent chance LLMs lead to another boom
               | in that kind of work.
        
             | hedora wrote:
             | Either you're using it wrong, or you are using the wrong
             | tools.
             | 
             | For search, try kagi fastgpt (no subscription required):
             | 
             | https://kagi.com/fastgpt
             | 
             | For code completion, I've found it's not good at jumping
             | hard hurdles, but it is a bit better than find replace
             | (e.g. it finds things that are syntactically different, but
             | semantically related), and can notice stuff like "you
             | forgot to fix the Nth implementation of the interface you
             | just extended".
             | 
             | It's also good at "I need to do something simple in a
             | language I do not know".
             | 
             | I've definitely encountered ai slop from coworkers. I'm
             | sure they also produce stack overflow copy paste garbage
             | too. Dealing with their newly-found increased
             | "productivity" is an open problem.
             | 
             | Insisting on strict static typing helps. The LLMs can't
             | help with that, and it forces a higher bar before
             | compilation succeeds.
        
               | righthand wrote:
               | I shut off Kagi search LLM stuff because I don't need an
               | LLM typing stuff out while I'm literally looking at a
               | list of results.
        
           | LaGrange wrote:
           | > 1) Wouldn't want to go back
           | 
           | I went back. It sucks pretty bad, actually.
        
           | jdlshore wrote:
           | I went back. It's fine at solving small problems and jump-
           | starting an investigation, but only a small step better than
           | a search engine. It's no good for deep work. Any time I've
           | used it to research something I know well, it's got important
           | details wrong, but in a confident way that someone without my
           | knowledge would accept.
           | 
           | RLHF trains it to fool humans into thinking it's
           | authoritative, not to actually be correct.
        
         | rsynnott wrote:
         | Lining up for whatever the next thing is. "Look, we know we
         | said AR/VR was the next big thing in the late tens and LLMs
         | were the next big thing in the early 20s, but quantum is the
         | next big thing now. For real, this time!"
         | 
         | (Not entirely sure what the next fad will be, but some sort of
         | quantum computing thing doesn't feel unlikely. Lot of noise in
         | that direction lately.)
        
           | sigmoid10 wrote:
           | Curiously, all of these three (VR/AI/QC) are limited by
           | hardware. But AI is the only one that has seen meaningful
           | progress by just throwing more contemporary hardware at it.
           | Sure, future hardware might bring advancements to all of
           | them. But if you're making an investment plan for the next
           | quarter, the choice is pretty obvious. This is why AI rules
           | the venture capitalist sector instead of fusion or other long
           | term stuff.
        
             | zamalek wrote:
             | Of the three, QC is different in that it's _not_ a solution
             | looking for a problem. If we ever scale QC to the point
             | where it can do meaningful work (the  "if" is doing a lot
             | of work there - per your point about hardware), then I
             | don't see it fumbling like the other two have. We have
             | immediate and pressing needs that we know how to solve with
             | QC. The other two are very much research coming up with
             | cool toys, and product fucking around so that they can find
             | out what to use them for.
        
           | akomtu wrote:
           | Quantum AI will be the next buzzword, once AGI loses steam.
        
         | dfxm12 wrote:
         | Did they tell the M365 sales/marketing teams about this? My
         | users get bombarded with sales pitches, new free trials and
         | other commms about how wonderful copilot is. It's almost a full
         | time job to manage people's expectations around this...
        
         | fny wrote:
         | Nadella is just saying we haven't yet seen a revolution yet
         | measurable by 10% economic growth--he makes no statement about
         | the future.
         | 
         | Most people have no clue how to use AI or where to use it in
         | their lives. There was a guy at work who was submitting
         | command-like queries (give meeting summary) and complained
         | about how it left out XYZ. Then I told him to ask "Give me the
         | meeting summary with X, Y, Z" or "what did so and so say about
         | Y."
         | 
         | His mind was blown.
         | 
         | We are in the first inning. We haven't figured out how to
         | integrate this into everything yet.
        
         | apsec112 wrote:
         | He doesn't actually say that, the (very biased and polemical)
         | article writer seems to have made that up. The actual quote is:
         | 
         | "Us self-claiming some [artificial general intelligence]
         | milestone, that's just nonsensical benchmark hacking to me. So,
         | the first thing that we all have to do is, when we say this is
         | like the Industrial Revolution, let's have that Industrial
         | Revolution type of growth. The real benchmark is: the world
         | growing at 10 percent. Suddenly productivity goes up and the
         | economy is growing at a faster rate. When that happens, we'll
         | be fine as an industry."
         | 
         | That's a completely different statement from "AI is generating
         | no value"!
        
       | m00dy wrote:
       | what happened to Jevons paradox then ?
        
       | orzig wrote:
       | Remember that there is a lot of nuance to these sorts of deals.
       | 
       | I don't have any domain knowledge, but I recently saw an
       | executive put in restaurant reservations for five different
       | places the night of our team offsite, so he would have
       | optionality. An article could accurately claim that he later
       | canceled 80% of the teams eating capacity!
        
         | ZeroGravitas wrote:
         | But if it was reported in the press that your team was going to
         | eat 5 meals at the same time before it was revealed that it was
         | just an asshole screwing over small businesses, then that
         | correction in eating capacity should be reported.
        
           | FrustratedMonky wrote:
           | "should "
           | 
           | But often not.
           | 
           | That was the point in the parent. How this is being reported
           | is bit skewed.
           | 
           | And also there is the problem that nobody reads corrections.
           | Lies run around the globe before the Truth has tied its
           | shoelaces, or some quote like that.
        
       | smetj wrote:
       | > Wall Street stepped up its questions about the massive outlays
       | after the Chinese upstart DeepSeek released a new open-source AI
       | model that it claims rivals the abilities of US technology at a
       | fraction of the cost.
       | 
       | And that's the crux of it and that's also why DeepSeek was such a
       | big deal.
        
       | everfrustrated wrote:
       | This could simply be datacenter deals started years ago that they
       | are pulling out of now they have larger AI-optimized DC's being
       | commissioned in places more suited to faster & larger power
       | availability.
        
       | strangescript wrote:
       | OpenAI is pivoting away from MS. MS also has their own internal
       | AI interests. Need to frame this for investors that doesn't look
       | like we are losing out. "Nadella doesn't believe in AI anymore".
       | Done and done.
        
       | blonderoast wrote:
       | a lot of this sounds like a normal course of business and stuff
       | that msft does all the time. i don't understand the openai drama
       | speculation on here. msft continues to have right of first
       | refusal on openai training and exclusivity on inferencing. if
       | someone else wants to build up openai capacity to spend money on
       | msft for inferencing, msft would be thrilled. they recognize
       | revenue on inferecing not training at the moment, so it's all
       | upside to their revenue numbers
        
       | feverzsj wrote:
       | Seems consumers just hate every product with AI functionality.
        
         | lompad wrote:
         | More like consumers hate every product where AI gets shoved in
         | their face without any thought and --
         | 
         | Okay, maybe you're right.
        
         | boshalfoshal wrote:
         | The consumer market doesnt matter much here, imo.
         | 
         | I think most companies know b2b is the most lucrative segment
         | for AI because it reduces one of their top costs - people.
         | Companies selling AI are basically just selling the ultimate
         | automation tool, which (in theory) is massive value for
         | companies. Having a nice consumer product is a side gig.
        
       | jr-ai-interview wrote:
       | It's sad, people are already recklessly rearranging business
       | logic via AI in key medical software systems due to global
       | outsourcing linguistic reasons.
       | 
       | I have so much intense hatred for pg and Sama right now I rarely
       | come to this shit show of a site
        
         | jr-ai-interview wrote:
         | Surely smart people exists, right?
        
       | nokun7 wrote:
       | So, Microsoft's move to ditch leases for "a couple hundred
       | megawatts" of data center capacity, as noted in TFA, is a pretty
       | intriguing shift--and it's not just a random cutback. Per some
       | reports from Capacity Media and Analytics India Magazine, it
       | looks like they're pulling some of their international spending
       | back to the U.S. and dialing down the global expansion frenzy.
       | For context, that "couple hundred megawatts" could power roughly
       | 150,000 homes, (typical U.S. energy stats) so it's a decent chunk
       | of capacity they're letting go.
       | 
       | IMO it's not a full-on retreat--Microsoft's still on track to
       | drop $80 billion this fiscal year on AI infrastructure, as
       | they've reaffirmed. But there's a vibe of recalibration here.
       | They might've overcooked their AI capacity plans, especially
       | after being the top data center lessee in 2023 and early 2024.
       | Meanwhile, OpenAI--Microsoft's big AI partner--is reportedly
       | eyeing other options, like Project Stargate with SoftBank, which
       | could handle 75% of its compute needs by 2030 (per The
       | Information report). That's a potential shift in reliance that
       | might've spooked Microsoft into rethinking its footprint.
       | 
       | Also it seems they're redirecting at least some costs - over half
       | that $80 billion is staying stateside, per Microsoft's own blog,
       | which aligns with CEO Satya Nadella's January earnings call push
       | to keep meeting "exponentially more demand." It's a pragmatic
       | flex--trim the fat, dodge an oversupply trap, and keep the core
       | humming. Whether it's genius or just good housekeeping, it shows
       | even the giants can pivot when the AI race gets too hot.
        
       | tsunego wrote:
       | No stargate?
        
         | rcleveng wrote:
         | Maybe stargate is the reason why MS doesn't need these leases?
        
         | meindnoch wrote:
         | It's already done. Their AI is self-evolving now. No need for
         | data centers anymore.
        
         | ivalm wrote:
         | I don't think they are a compute partner for stargate.
        
           | w0m wrote:
           | IIRC, MS has right-of-first-refusal on providing any
           | new/necessaary compute for stargate.
           | 
           | But also iirc; Stargate was well along before trumps
           | horse/pony show also no idea how much is still necessary to
           | purchase.
        
       | consumer451 wrote:
       | Related discussion on reddit:
       | 
       | https://old.reddit.com/r/stocks/comments/1ix27vd/microsoft_c...
        
       | packetlost wrote:
       | Man, bubble popping already?
        
         | cgcrob wrote:
         | Yep. Investors are shifting capital out of the market. Always
         | happens. The little guys end up paying for the losses.
        
       | Aurornis wrote:
       | By itself this doesn't mean much. If they're reallocating funds
       | to different data centers or building their own then this could
       | be a wash.
        
       | m3kw9 wrote:
       | It's additive math, is the overall plus or minus. There is always
       | gonna be some push and pull.
       | 
       | " TD Cowen posited in a second report on Monday that OpenAI is
       | shifting workloads from Microsoft to Oracle Corp. as part of a
       | relatively new partnership. The tech giant is also among the
       | largest owners and operators of data centers in its own right and
       | is spending billions of dollars on its own capacity. TD Cowen
       | separately suggested that Microsoft may be reallocating some of
       | that in-house investment to the US from abroad"
        
       | josefritzishere wrote:
       | Is the AI Bubble already popping?
        
         | kittikitti wrote:
         | Do you think Big Tech will go down when it does or will it
         | further consolidate and centralize power?
        
           | bluefirebrand wrote:
           | Given how things go when past bubbles have popped, this is
           | likely to be "both" I think. Just not all at once
           | 
           | When the bubble pops you see things collapse
           | 
           | Then it becomes a feeding frenzy as companies and IPs get
           | bought up on the cheap by whoever has a bit of money left
           | 
           | When the dust clears, some old players are gone, some are
           | still around but weaker, some new players have emerged that
           | resemble conglomerates of the old players, but overall a lot
           | of the previous existing power is consolidated into fewer
           | hands
        
         | elif wrote:
         | I doubt it. MS has what they need in oAI partnership. I think
         | this is more likely just a reflection of the broader economic
         | environment. Going into a recession, cut investment, try to
         | retain as much talent as you can afford to for the next few
         | years.
        
       | DisjointedHunt wrote:
       | Old news and incorrect the way it is phrased :
       | https://x.com/dylan522p/status/1894050388145508586
       | 
       | I'm not sure why there is so much poor reporting on accelerator
       | demand recently, it seems there are a lot of people looking to
       | sell a message that isn't grounded in reality.
        
         | 01100011 wrote:
         | Quite a lot of money is at stake in the control for retail
         | investors' minds.
         | 
         | Lots of stupid takes get amplified by people who lack
         | background. Look at the recent Intel/TSMC/Broadcom merger
         | rumors. The story was "Canada could join the US" level of
         | stupid to anyone with experience anywhere near chip fabrication
         | but it still circulated for several days. Also, look at what it
         | did to the stock price of INTC. Lots of money made and lost
         | there.
        
       | PeterStuer wrote:
       | Microsoft said they were going to spend 80 Billion on AI data
       | centers, and they confirmed this again, so there is no 'scaling
       | back'.
       | 
       | Speculation:
       | 
       | I suspect after they observed the incredible speed with which
       | Grok was able to build out a leading edge AI infrastructure
       | themselves in Memphis, far faster than what the traditional data-
       | centers could offer it, Microsoft might have had an epiphany and
       | went 'wait, why are we not doing this?'
        
         | mistrial9 wrote:
         | somehow, Memphis, an ancient Egypt royal center and core of a
         | grand imperial slave state.. is such a fitting name for these
         | developments
        
           | kragen wrote:
           | Ancient Egypt was neither imperial nor a slave state; though
           | it did have slavery, most Egyptians were not slaves.
        
             | mistrial9 wrote:
             | https://en.wikipedia.org/wiki/Slavery_in_Egypt
             | https://en.wikipedia.org/wiki/Slavery_in_ancient_Egypt
        
               | kragen wrote:
               | These pages are somewhat out of date, but they confirm
               | what I said: "Ancient Egypt was a peasant-based economy
               | and it was not until the Greco-Roman period that slavery
               | had a greater impact."
        
               | mistrial9 wrote:
               | no - by not specifying which Kingdom you were referring
               | to, it revealed an incomplete, obstinate, reactive
               | answer.. (as I have also done many times) So my remedy to
               | that today was to _read_ a bit before further damage is
               | done. Non-English pages might also be useful on this
               | massive and historical topic
        
       | aresant wrote:
       | - This is a proper MSFT resource allocation commentary, not an
       | industry wide canary in coalmine
       | 
       | - MSFT CapEx is up 45% YoY, positioning for inference dominance
       | 
       | - MSFT is prioritizing AI inference for millions of customers
       | over massive AI training for OpenAI
       | 
       | - Losing inference demand risks clients moving to AWS/GCP
       | 
       | - MSFT taking bet that industry overbuild will lead to more
       | attractive leasing terms in future vs owning
       | 
       | - OpenAI chases AGI; MSFT chases scalable, affordable AI that
       | drives Azure adoption
       | 
       | - Leadership is risk adjusted - they win if OpenAI succeeds, and
       | win if open-source wins
        
         | MichaelZuo wrote:
         | If they are taking the bet that industry will overbuild, how is
         | it not a canary in a coal mine?
         | 
         | There is almost certainly at least one person in Redmond
         | working on this that's smarter and better informed than you,
         | just going off probability.
        
           | outside1234 wrote:
           | Or that person is this person
        
           | snapcaster wrote:
           | >There is almost certainly at least one person in Redmond
           | working on this that's smarter and better informed than you,
           | just going off probability.
           | 
           | this isn't the actual test though right? it's surely true,
           | and yet companies make bad decisions all the time. It needs
           | to be conditioned on "someone smarter and better informed
           | than you _with influence in the organization sufficient to
           | enact change_"
        
         | echelon wrote:
         | Nailed it. Nadella's commentary is essentially this.
         | 
         | Dwarkesh's interview is fantastic:
         | https://www.youtube.com/watch?v=4GLSzuYXh6w&t=348s (timestamp
         | for "where is the value created?" question)
        
       | iainctduncan wrote:
       | The thing that is driving me crazy in all these threads is that
       | we have invariably a bunch of programmers saying "I use it for
       | coding and I would never go back" but this is orthoganal to the
       | question of whether it's a good business.
       | 
       | If you use gen-AI but don't pay the real cost, you're not really
       | a data point on the economics of it. It could be useful to
       | programmers and still be a terrible business if the cost of
       | giving you that usefulness is more than you (or your employer)
       | would pay.
        
         | Valord wrote:
         | My impression is that costs will continue to go down. Large
         | investments are unlikely to be profitable for these businesses.
         | Whoever is dumping billions into this is unlikely to get their
         | money back. The new tooling, models, discoveries seem to be
         | commoditized within months. There are no moats. If things keep
         | going this way there will never be a point where employers (or
         | anybody for that matter) have to pay the real cost.
        
       | fabiofzero wrote:
       | Yikes
        
       | crowcroft wrote:
       | My theory:
       | 
       | - OpenAI and Oracle partnership: When Microsoft is 'at capacity'
       | more demand can go to Oracle, so now Microsoft don't need to
       | rapidly add capacity with leases (which likely have a lower ROI
       | than Microsoft owned and operated centres).
       | 
       | - Longer term investments are still going ahead: Microsoft aren't
       | cutting back on capex investment. They don't want to lease if
       | they don't have to, but long term still see a huge market for
       | compute that they will want to be a key supplier of.
       | 
       | I think Microsoft's goal here is to focus on expanding their
       | capex to be a long term winner instead of chasing AI demand at
       | any cost in the short term. Likely because they already think
       | they're in a pretty strong position already.
        
       | light_triad wrote:
       | Makes sense given what Nadella recently said:
       | 
       | - Self claiming some AGI milestone is "non-sensical benchmark
       | hacking"
       | 
       | - The AI model race won't be winner-take-all
       | 
       | - The real benchmark is if the world is growing at 10%
       | 
       | MSFT is putting its focus on AI adoption in the app layer and
       | "at-scale consumer properties"
       | 
       | Full conversation: https://www.youtube.com/watch?v=4GLSzuYXh6w
        
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