United States | News & Politics

3525 readers

176 users here now

Welcome to !usa@midwest.social, where you can share and converse about the different things happening all over/about the United States.

If you’re interested in participating, please subscribe.

Rules

Be respectful and civil. No racism/bigotry/hateful speech.

No memes/pics of text

Post news related to the United States.

founded 3 years ago

MODERATORS

simsymbiote@midwest.social

Type1@midwest.social

exposingfash@midwest.social

119

Jerome Powell says the AI hiring apocalypse is real: 'Job creation is pretty close to zero.’ (fortune.com)

submitted 1 month ago by cm0002@infosec.pub to c/usa@midwest.social

21 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] blueworld@piefed.world 31 points 1 month ago (3 children)

Powell also pushed back on the idea that all that spending is amounting to another speculative bubble. He drew a clear line between today’s surge in capital expenditure and the dot-com era, noting “these companies actually have earnings.” Those projects, he said, aren’t especially sensitive to interest rates, though, since they reflect long-term bets on higher productivity.

Remember, the industry is spending over $30 billion a month (approximately $400 billion for 2025) and only receiving a bit more than a billion a month back in revenue.

https://pracap.com/an-ai-addendum/

Despite $30–40 billion in enterprise investment into GenAI, this report uncovers a surprising result in that 95% of organizations are getting zero return.

MIT NANDA study – The GenAI Divide: State of AI in Business 2025

So they are firing workers, spending their reserves on data centers that wear out and deprecate fast, on a product that is failing to deliver results and the C suite thinks that this is a way to generate value... Huh?

[–] bear@lemmy.blahaj.zone 9 points 1 month ago

When you put it like that... It seems bleak.

[–] femtek@lemmy.blahaj.zone 8 points 1 month ago (1 children)

It generates value for them and the shareholders in the short term. Unfortunately that always means we get screwed.

[–] The_Che_Banana@beehaw.org 7 points 1 month ago

The economy is based on the volume/speed of transactions, this is still propping up the economy.....until it doesn't.

and then, whoopsie, all the guys who shorted the economy gain (again) and the shit hits the fan all the 1% buy up the collateral damage, and you get cold ramen in your car, which is now your home.

[–] stoly@lemmy.world 1 points 1 month ago

You've made a good effort at explaining why I think that the BBA and MBA are the only worthless degrees. They do nothing but spreadsheets, networking, and patting themselves on the back.