AI companies will fail. We can salvage something from the wreckage

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www.theguardian.com/us-news/ng-interactive/2026…

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Yeah some ram and enterprise SSDs at bargain prices. Can’t wait to buy bulk lots for next to nothing

Or some of those cheap spinny disks for my NAS.


Unless your home lab can use HBM you’re gonna be SOL on the RAM front.

Hey, maybe I can grab a whole stack then haha

Get enough and you can make your own super computer or server. Make a new gaming service and call it Mist.

Good idea. If I don’t, that could be a Mist opportunity.

If you really try look at docker wolf, https://github.com/games-on-whales/wolf I use this gor my home I have a central computer I built myself and I use second hand PC as my moonlight clients. Can have multiple user too. The yic to use the same session on multiple computer is to use the streaming functionnality an you can control the same game on each of you clients. Game keep running you just connect to the screen to try to simplifie







Hopefully the skulls of the goons that benefitted from it.


If someone salvages the RAM chips, HMU, because Jesus Christ the inflated cost of PC/laptop hardware is getting out of hand.


Comments from other communities

That’s a great article, tanks for posting.

Cory has a way for getting right to the heart of things, and does so marvellously here. Great explanation of why the investments continue despite the dogshit economics of this industry.


Cory Doctorow is an international treasure


So what is the alternative? A lot of artists and their allies think they have an answer: they say we should extend copyright to cover the activities associated with training a model.

And I am here to tell you they are wrong. Wrong because this would represent a massive expansion of copyright over activities that are currently permitted – for good reason.

He goes on to say that prohibiting AI works from being copyrighted and worker collective bargaining are better solutions, and I really agree with the arguments for this. I also liked this bit about how some of what remains past the bubble could be useful:

And we will have the open-source models that run on commodity hardware, AI tools that can do a lot of useful stuff, like transcribing audio and video; describing images; summarizing documents; and automating a lot of labor-intensive graphic editing – such as removing backgrounds or airbrushing passersby out of photos. These will run on our laptops and phones, and open-source hackers will find ways to push them to do things their makers never dreamed of.


Not just something but a ton of used RAM sticks and GPUs.

NPUs not GPUs, they target different metrics



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maybe he means “ai companies will fail” as not so much as a prediction, but just a given. kind of like “one day, you must die” isn’t really a “prediction,” that’s just the way it is

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Has this not always happened with any new technology?

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Companies fail all the time with any new technology, and some AI companies will fail. In this case it’s just business not hatred. But I can see you’re also not seeing the other perspective of people hating on it by calling it hysterical so it’s a waste of time to argue with you.

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Likely more accurate to say ‘know the future’ instead of ‘predict the future’, but the intent is the same. He doesn’t share what will happen, only what will likely happen.



I agree with your choice to include the author’s name. Even without reading the article, it seems significant that Doctorow is writing in such a mainstream publication. I’m glad to see it

That’s the autofil choice not mine 😅. Anyway I think that puting his name will force more people to read it



Doctorow writes:

After more than 20 years of being consistently wrong and terrible for artists’ rights, the US Copyright Office has finally done something gloriously, wonderfully right. All through this AI bubble, the Copyright Office has maintained – correctly – that AI-generated works cannot be copyrighted, because copyright is exclusively for humans. That is why the “monkey selfie” is in the public domain. Copyright is only awarded to works of human creative expression that are fixed in a tangible medium.

And not only has the Copyright Office taken this position, they have defended it vigorously in court, repeatedly winning judgments to uphold this principle.

The fact that every AI-created work is in the public domain means that if Getty or Disney or Universal or Hearst newspapers use AI to generate works – then anyone else can take those works, copy them, sell them or give them away for nothing.

Genius.


https://pluralistic.net/2025/12/05/pop-that-bubble/#u-washington

The guardian has a paywall over Cory Doctorow’s writing. I don’t like that, so I found the article on his blog instead.


Take radiology: there is some evidence that AI can sometimes identify solid-mass tumors that some radiologists miss. Look, I’ve got cancer. Thankfully, it’s very treatable, but I’ve got an interest in radiology being as reliable and accurate as possible.

Let’s say my hospital bought some AI radiology tools and told its radiologists: “Hey folks, here’s the deal. Today, you’re processing about 100 X-rays per day. From now on, we’re going to get an instantaneous second opinion from the AI, and if the AI thinks you’ve missed a tumor, we want you to go back and have another look, even if that means you’re only processing 98 X-rays per day. That’s fine, we just care about finding all those tumors.”

If that’s what they said, I’d be delighted. But no one is investing hundreds of billions in AI companies because they think AI will make radiology more expensive, not even if that also makes radiology more accurate. The market’s bet on AI is that an AI salesman will visit the CEO of Kaiser and make this pitch: “Look, you fire nine out of 10 of your radiologists, saving $20m a year. You give us $10m a year, and you net $10m a year, and the remaining radiologists’ job will be to oversee the diagnoses the AI makes at superhuman speed – and somehow remain vigilant as they do so, despite the fact that the AI is usually right, except when it’s catastrophically wrong.

“And if the AI misses a tumor, this will be the human radiologist’s fault, because they are the ‘human in the loop’. It’s their signature on the diagnosis.”


I admire Cory’s perennial optimism, but the more billions the governments pump into this scheme, the less likely it’s going to be. “Too big to fail” and whatnot.

I suspect that the house of cards will come tumbling down as soon as one of the companies in this massive Ponzi scheme fails to pay their bill.

That’s what I’m saying tho. If the government is all-in on this, and basically the only reason the stock market is growing is because of AI related things, they will get a backstop or a bailout. At which point we’ll probably be forced to use it even more to justify that action.

The last bailout was required because the banking system was the artery of the economy.

As irresponsible as they were, they needed to be functional to allow the economy to function.

It is hard to see how the government can afford to bailout the “AI” sector.

It is also not critical to the economy. In fact, you could argue the bubble is costing the economy in terms of opportunity costs, increased energy prices, consumer prices for laptops, hard drives, etc.

My view is while they may want to bailout their tech bros friends, I’m not sure it is possible.



Might that bill be of the big beautiful variety?

No, “the due and payable” kind.




Was there ever a bubble “too big to fail”?



This is a good read even if you’re not a fan of doctorow yet.

Like another commenter said, his thoughts about centaurs and reverse centaurs are cool (basically whether you use technology or technology uses you).

Also his thoughts about copyright and if it would be good to reinforce it are interesting - he says that artists won’t be paid well if their art can’t be stolen for AI training, their contracts will be adjusted and that’s it. He says what gives bargaining power is the fact that the output of LLMs can’t be copyrighted, which means that human artists have to be in the loop of making tomorrows media.

the fact that the output of LLMs can’t be copyrighted

That may be the status quo right now, but I expect tech and media companies will fight tooth and nail to gain copyright protections over the slop they generate. A few bribes donations to the right politicians and you can get legislation that grants whatever rights you want.

Assuming it actually becomes valuable/profitable at some point.



I agree with him in general about AI but hot goddamn the man gives serious self-described philosopher/cult leader/grifter vibes out the wazoo.

How’s that?

AI bros do venerate science-fiction writers an unhealthy amount. Fictional fearmongering like “AI2027” is taken as fact, an actual AI doomsday cult leader has no credentials except publishing fantasy fiction, people like Neal Stephenson are treated almost as prophets etc… So if that’s the bit of the article you take issue with, I don’t think it’s a problem


I agree somewhat, but I think it’s just that he’s US-american, they can be like that

Doctorow is Canadian-British.





I’ve seen multiple articles over the past few days, I seriously hope we are now seeing the downfall of AI. I seriously hope we can return back to creating meaningful technology.

I think it’s going to take a bit longer for the downfall of AI



im happy Microsoft dumped all their chips into AI. gonna be fantastic when it goes sideways

What do you predict, cheap second hand tech or just watching it all fall apart with some popcorn?

Government bail outs. 🥲


100%. Stock will go up cuz we’ll pay the price. Execs will all get bonuses for their brilliant strategy.


On the bright side: The government can’t afford to bail out something this big with no purpose.






The point about centaurs is good too


For someone who is engrossed in SCIFI what he is presenting will be salvaged from the wreckage is terribly optimistic.

If society doesn’t wake up and organize itself the data centers will likely be used as the operational epicenter of the dystopian police state.

One could easily argue that is the expected end use of the data centers by their owners and the AI hype cycle is deliberare con forcing the plebs to forge their own chains with their retirement accounts.

That’s the intended goal of big tech AI orgs. AI is a weapon and is sold to governments using fear as the key motivator. It is the same as any other weapons manufacturer. The military budget has few constraints and corporations know this. AI won’t fail. Governments will make sure of it because they will be dependent on it, just likes all other weapons.



Western AI companiess will fail*


Let them burn. I don’t believe this is true or will actually happen. But, one can hope I guess.

They are burning down the planet to put slave harnesses on the masses. Fuck the billionaires.


spending billions to hype the pivot to video or cryptocurrency or NFTs or the metaverse or AI.

Thats just the descending staircase of my interest in new technology



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