<![CDATA[Big companies have an expensive new addiction to AI, and their smack is getting more expensive.]]>Big companies have an expensive new addiction to AI, and their smack is getting more expensive. Who could have seen this coming? From the WSJ:

"Use of artificial intelligence by big companies is exploding—and the soaring cost has some of them pumping the brakes in a way that could complicate AI’s triumphal march across the economy.
Executives across industries this year have urged employees to integrate AI tools into their work, spending freely to encourage experimentation and seeking to send a message to Wall Street that their companies won’t be left behind in a coming wave of disruption."

"All that enthusiasm has resulted in skyrocketing costs for so-called tokens, the basic unit of measurement for AI computing, as AI model providers seek to balance supply and demand and manage their own costs. Some enterprises have hit their annual budget in just three months or reported seeing their AI spending bills double or triple."
 
"Now corporate leaders are scrambling to bring down expenses by finding ways to ration AI use in their organizations, steer workers toward cheaper, homegrown tools and help them hone their skills to improve returns." 

https://www.wsj.com/tech/ai/corporate-america-is-starting-to-ration-ai-as-cost-skyrockets-1eb99d7a (paywall)

https://archive.ph/v2dwg

]]>https://board.circlewithadot.net/topic/5bbf20ec-d885-4d69-8989-b02c28b32f0c/big-companies-have-an-expensive-new-addiction-to-ai-and-their-smack-is-getting-more-expensive.RSS for NodeFri, 05 Jun 2026 13:26:11 GMTSat, 30 May 2026 14:52:55 GMT60<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 16:53:22 GMT]]>@briankrebs Ah, this trend cannot come too soon.

]]>https://board.circlewithadot.net/post/https://m.ai6yr.org/users/ai6yr/statuses/116664565906042200https://board.circlewithadot.net/post/https://m.ai6yr.org/users/ai6yr/statuses/116664565906042200Sat, 30 May 2026 16:53:22 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 16:52:31 GMT]]>@briankrebs

let they who have never had that discussion with the CFO on "how to get our cloud spend down" throw the first stone. 😉

"go to the cloud, they said! way cheaper than bare metal, they said!"

]]>https://board.circlewithadot.net/post/https://infosec.exchange/users/paul_ipv6/statuses/116664562559876391https://board.circlewithadot.net/post/https://infosec.exchange/users/paul_ipv6/statuses/116664562559876391Sat, 30 May 2026 16:52:31 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 16:52:05 GMT]]>@briankrebs Yes
I have a friend who worked for a big company. The employees were required to use AI. A bunch of them got fired - by email - a couple weeks ago. If your big company insists you use AI, start looking for a new job, because you're training your replacement.

]]>https://board.circlewithadot.net/post/https://mastodon.social/users/SueDiOh/statuses/116664560867397714https://board.circlewithadot.net/post/https://mastodon.social/users/SueDiOh/statuses/116664560867397714Sat, 30 May 2026 16:52:05 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 16:50:41 GMT]]>@briankrebs I like this bit, it’s all about the “vibes” when it comes to those pesky returns 😂

Anthropic spokeswoman: “We’re working with customers to give them the tools to make sure the return is something they can see, not just feel.”

]]>https://board.circlewithadot.net/post/https://infosec.exchange/ap/users/115900608895718798/statuses/116664555357370037https://board.circlewithadot.net/post/https://infosec.exchange/ap/users/115900608895718798/statuses/116664555357370037Sat, 30 May 2026 16:50:41 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 16:11:22 GMT]]>@briankrebs

I have a vague idea who actually needs to "hone their skills to improve returns".

]]>https://board.circlewithadot.net/post/https://tldr.nettime.org/users/katzenberger/statuses/116664400805053149https://board.circlewithadot.net/post/https://tldr.nettime.org/users/katzenberger/statuses/116664400805053149Sat, 30 May 2026 16:11:22 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 16:01:50 GMT]]>@briankrebs

Companies used to capturing and enshittifying others when another company does the same thing to them:

]]>https://board.circlewithadot.net/post/https://cosocial.ca/ap/users/116274828376666520/statuses/116664363287134588https://board.circlewithadot.net/post/https://cosocial.ca/ap/users/116274828376666520/statuses/116664363287134588Sat, 30 May 2026 16:01:50 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:49:38 GMT]]>@elmuerte @briankrebs Here’s hoping!

]]>https://board.circlewithadot.net/post/https://zeroes.ca/users/tantramar/statuses/116664315310207063https://board.circlewithadot.net/post/https://zeroes.ca/users/tantramar/statuses/116664315310207063Sat, 30 May 2026 15:49:38 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:48:51 GMT]]>@tantramar @briankrebs I doubt any of them love their regular fealty sessions; or their days in court or oversee committees.

]]>https://board.circlewithadot.net/post/https://idlethumbs.social/users/elmuerte/statuses/116664312244372341https://board.circlewithadot.net/post/https://idlethumbs.social/users/elmuerte/statuses/116664312244372341Sat, 30 May 2026 15:48:51 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:47:21 GMT]]>@briankrebs

Amazing that they had the budget to explode when it comes to AI and yet none for that 0.75% pay rise that they promised 5 years ago.

Look at them. Bastards as far as the eye can see.

]]>https://board.circlewithadot.net/post/https://mastodon.ie/users/GracelessHippo/statuses/116664306303911214https://board.circlewithadot.net/post/https://mastodon.ie/users/GracelessHippo/statuses/116664306303911214Sat, 30 May 2026 15:47:21 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:44:38 GMT]]>@elmuerte @briankrebs Enough wealth can sheild one from a lot of scrutiny.

]]>https://board.circlewithadot.net/post/https://zeroes.ca/users/tantramar/statuses/116664295626128817https://board.circlewithadot.net/post/https://zeroes.ca/users/tantramar/statuses/116664295626128817Sat, 30 May 2026 15:44:38 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:43:27 GMT]]>@tantramar @briankrebs I doubt the quality of life of extremely rich people improved with the increased wealth combined with the increased scrutiny.

]]>https://board.circlewithadot.net/post/https://idlethumbs.social/users/elmuerte/statuses/116664290998707142https://board.circlewithadot.net/post/https://idlethumbs.social/users/elmuerte/statuses/116664290998707142Sat, 30 May 2026 15:43:27 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:40:51 GMT]]>@briankrebs lol

]]>https://board.circlewithadot.net/post/https://mas.to/users/maxfenton/statuses/116664280764999519https://board.circlewithadot.net/post/https://mas.to/users/maxfenton/statuses/116664280764999519Sat, 30 May 2026 15:40:51 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:20:07 GMT]]>Publicly traded companies tend to have a problem telling Wall Street that their employees have a deeper understanding of the business than these outsider gambling addicts trading them.

]]>https://board.circlewithadot.net/post/https://hachyderm.io/users/erraggy/statuses/116664199248300440https://board.circlewithadot.net/post/https://hachyderm.io/users/erraggy/statuses/116664199248300440Sat, 30 May 2026 15:20:07 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:18:08 GMT]]>@briankrebs

We just got done implementing AI acceptable use policies because our PE Owners said we have to use AI.

Its been a month. We have maybe 40 users in Claude, Copilot, or Gemini and its already cost us $40,000 roughly.

Most of our internal debate is who gets the bill, because IT is not using AI (except, admittedly to make inside joke teams backgrounds)

For reference: company with about 300 office employees and about 3000 employees total with retail, production, and warehouse staff

]]>https://board.circlewithadot.net/post/https://gts.thinkstoomuch.net/users/nagaram/statuses/01KSWQDJPZXWH1WPMSTZDBP8CYhttps://board.circlewithadot.net/post/https://gts.thinkstoomuch.net/users/nagaram/statuses/01KSWQDJPZXWH1WPMSTZDBP8CYSat, 30 May 2026 15:18:08 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:17:48 GMT]]>@briankrebs I assume that class solidarity is involved; but it's fascinating how smoothly the WSJ can write a completely nonjudgmental and blame-free article about executives spending hundreds of millions of dollars on the basis of hype and laughably laughably lazy metric design and having that almost immediately not pay off.

If this were an unsexy public sector procurement thing of similar quality I'm guessing they'd have some choice words that are mysteriously not applicable here.

]]>https://board.circlewithadot.net/post/https://cyberplace.social/users/fuzzyfuzzyfungus/statuses/116664190154251171https://board.circlewithadot.net/post/https://cyberplace.social/users/fuzzyfuzzyfungus/statuses/116664190154251171Sat, 30 May 2026 15:17:48 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:17:24 GMT]]>Huh, didn't see that coming 🫠

]]>https://board.circlewithadot.net/post/https://hachyderm.io/users/erraggy/statuses/116664188565284957https://board.circlewithadot.net/post/https://hachyderm.io/users/erraggy/statuses/116664188565284957Sat, 30 May 2026 15:17:24 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:11:27 GMT]]>@briankrebs (singing) "He gives the kids free samples / because he knows full well / that today's young innocent faces / will be tomorrow's clientele"

- Tom Lehrer, The Old Dope Peddler

]]>https://board.circlewithadot.net/post/https://ohai.social/users/bet/statuses/116664165167589848https://board.circlewithadot.net/post/https://ohai.social/users/bet/statuses/116664165167589848Sat, 30 May 2026 15:11:27 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:08:45 GMT]]>@briankrebs How long until there is a secondary market for "AI token" prices, short-selling them, etc. Even its own cryptocoin, maybe it will be called BitBucketCoin or something.

]]>https://board.circlewithadot.net/post/https://mastodon.social/users/jab01701mid/statuses/116664154575208871https://board.circlewithadot.net/post/https://mastodon.social/users/jab01701mid/statuses/116664154575208871Sat, 30 May 2026 15:08:45 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:07:44 GMT]]>@briankrebs Both the financial and political worlds have shifted radically of late. I think most are sticking with defensive avoidance rather than fully internalizing the changes. Hoping to slide by this "anomaly" and go back to "normal". The mental trauma of accepting that "normal" is dead is more than they want to consider.

]]>https://board.circlewithadot.net/post/https://infosec.exchange/users/Lightfighter/statuses/116664150553836332https://board.circlewithadot.net/post/https://infosec.exchange/users/Lightfighter/statuses/116664150553836332Sat, 30 May 2026 15:07:44 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:06:07 GMT]]>@briankrebs

You cannot accurately estimate token spend on a given query. You Cannot Accurately Estimate Token Spend On A Given Query. YOU CANNOT ACCURATELY ESTIMATE TOKEN SPEND ON A GIVEN QUERY.

So you cannot know how much you will spend on AI over an hour. Or a day. Or a quarter.

Maybe humans are actually cheaper.

]]>https://board.circlewithadot.net/post/https://mastodon.social/users/lemgandi/statuses/116664144199608996https://board.circlewithadot.net/post/https://mastodon.social/users/lemgandi/statuses/116664144199608996Sat, 30 May 2026 15:06:07 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:03:33 GMT]]>@elmuerte @briankrebs The key question being *whose quality of life?*

]]>https://board.circlewithadot.net/post/https://zeroes.ca/users/tantramar/statuses/116664134099821415https://board.circlewithadot.net/post/https://zeroes.ca/users/tantramar/statuses/116664134099821415Sat, 30 May 2026 15:03:33 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:01:53 GMT]]>@Lightfighter Right. Seems like AI kind of sidesteps (or maybe just massively speeds up) most of the normal stages of tech enshittification. When the product itself is shit to begin with, our mental models for how to deal w/ this disconnect are mismatched, imo.

]]>https://board.circlewithadot.net/post/https://infosec.exchange/users/briankrebs/statuses/116664127554087444https://board.circlewithadot.net/post/https://infosec.exchange/users/briankrebs/statuses/116664127554087444Sat, 30 May 2026 15:01:53 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 15:01:28 GMT]]>@briankrebs intensifies.

]]>https://board.circlewithadot.net/post/https://hostux.social/users/skyglobe/statuses/116664125882477426https://board.circlewithadot.net/post/https://hostux.social/users/skyglobe/statuses/116664125882477426Sat, 30 May 2026 15:01:28 GMT<![CDATA[Reply to Big companies have an expensive new addiction to AI, and their smack is getting more expensive. on Sat, 30 May 2026 14:59:57 GMT]]>@briankrebs They are going broke on highly subsidized tokens. Yet another blindingly obvious example of how there is no path to profitability for this product.

]]>https://board.circlewithadot.net/post/https://infosec.exchange/users/Lightfighter/statuses/116664119945768928https://board.circlewithadot.net/post/https://infosec.exchange/users/Lightfighter/statuses/116664119945768928Sat, 30 May 2026 14:59:57 GMT