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

submitted 4 days ago by cm0002@infosec.pub to c/usa@midwest.social

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[–] blueworld@piefed.world 31 points 4 days 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 4 days ago

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

[–] femtek@lemmy.blahaj.zone 8 points 4 days 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 4 days 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 20 hours 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.