Posted on 05/27/2026 5:38:33 AM PDT by millenial4freedom
Artificial intelligence revolution is meant to bring unprecedented efficiency and boundless productivity for the tech landscape by cutting the costs.
But the promise of revolution is currently hitting a stark fiscal reality marked by unexpected AI-related costs, leading to the burning of budget tech companies designed for 2026 year.
Of all the companies, Uber and Microsoft are grappling with AI budget overruns. For instance, Microsoft recently has decided to rescind its internal Claude code license along with its Experiences and Devices division ending access by June 30, 2026.
The decision to cancel the pilot has been taken only after 6 months since it launched in December 2025 due to unsustainable token-based billing consumption as reported by Fortune.
The announcement comes after the AI costs went beyond company’s expectations. The engineers are advised to use GitHub Copilot CLI instead of Claude.
(Excerpt) Read more at thenews.com.pk ...
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So, AI is not free?
Why are all these companies trying to force it down our throats?
I didn’t ask for AI on my phone, my computer or my browser but it’s in my face every day.
Exactly right. All the exuberance in 98/99, all the investment, the tech crash, the washouts, the companies picking over the bones. But the chaos faded, restructuring happened, creative destruction worked, and we got past it to the Internet we have today. I was in the thick of it back then massively overbuilding optical networks. Then, literally in one month, orders for optical transmission equipment stopped, followed by 100,000 people were fired, and the company went out of business.
AI is a massive bubble. Companies are going to have to start re-hiring the humans they thought they could let go because of AI and the ridiculous valuation of Nvidia as well as the absolutely stupid money being thrown at Data Centers will all have to be rolled back.
You are right, and there’s been a lot of talk on Twitter/X about an upcoming crash.
Hopefully this bubble will be contained and other sectors will be less affected.
Hard drives and especially solid state drives and RAM have seen absurd price increases because of the AI bubble. It can’t burst soon enough so prices come back to reasonableness for home and small business users.
Artificial Intelligence is neither artificial nor intelligent.
These companies have always been hiring humans - it's just that the ones pretending to be "AI" were in India. As more companies use "AI" as an excuse to lay off American workers and hire Indians as replacements, the Indian companies scramble to find computer operators to fill the gap.
AI Chatbot Turns Out to Be 700 Engineers in India:
https://tech.co/news/ai-startup-chatbot-revealed-as-human-engineers
Amazon Abandons Checkout-Less Tech That Secretly Used 1,000 Indian Employees Watching Cameras
https://thedeepdive.ca/amazon-abandons-checkout-less-tech-that-secretly-used-1000-indian-employees-watching-cameras/
"Amazon is doing away with the “Just Walk Out” checkout-less technology at its Fresh grocery stores... Instead of relying solely on artificial intelligence and advanced sensors, as Amazon had claimed, the Just Walk Out system depended heavily on manual labor from over 1,000 workers based in India... These remote “cashiers” monitored video footage from stores to track what items customers removed from shelves before generating receipts hours later."
Capex and ongoing costs are being conflated in this article. Spending on using and developing AI are two different costs just as the cost of hiring an employee and training them is different that the ongoing salary costs.
Pets.com.
OpenAI sucks up as much money as fools give them ,LOL
I think a lot of people are using AI Agents that suck up tokens, instead of just using the AI to write the scripts that run on their own, without needing to use tokens.
A classic case of “When you are a hammer everything is a nail.”
No kidding. I had spec'ed a PC I was going to build for Windows 11 last September. The total cost was around $1,400. As with most of my Windows PCs I purchased or built, I would expect it to last me 6+ years.
But life happened, and I found myself with little to no time to do the build, so I bit the bullet and upgraded my 6 year-old Windows 10 Pro PC to Windows 11 Pro before the EOL deadline in October.
A couple of weeks ago, I brought up my PC parts list I had saved, and I needed to make one change to make it work. That same PC will now cost around $2,600 to build. Most of the increase was for the two SSDs and the RAM. Oof.
Absolutely correct. I do this with Claude and n8n automations.
FWIW, from my perspective, for the first 20 or so years of the PC revolution, the machine you wanted was ~$3000. My first IBM PC was about that - in 1982, in 1982 dollars!
$1000 or less machines that will do quite a lot, in 2026 dollars, is still just amazing if you step back and look at it..
Chewy.com
I say it would be just as easy to write a straight-forward Python script that uses LangChain. No need for Claude/n8n etc.
I usually start with n8n, then convert it to Python if it needs to scale, as it is much more robust.
I thought n8n basically converts it to a Python script using LangChain in the background.
because they need your data, your questions, your responses - that is all “feed” data to improve the AI
It wasn’t unexpected. Especially by MS who are in the process or raising the price. Everybody knew this was coming 2 years ago at least. The AI market was always on the crack dealer business model, first one’s free, but eventually you’re gonna pay, and pay a lot. They aren’t building billion dollar data center to give it away for free.
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