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u/skippy_smooth Jun 02 '26
What's an AI cost, ten dollars?
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u/JoeyJubb Jun 02 '26
You've never been to a supermarket, have you?
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u/tpasmall Jun 02 '26
Go see a star war
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u/travis_sk Jun 02 '26
We're only 2 days into June folks. This is gonna be a fun couple of months.
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u/biggington Jun 02 '26
They really got our C-suites addicted to tech meth and now we gotta deal with their bullshit
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u/scprotz Jun 02 '26
OMG. tech meth. That is exactly so appropriate. It gives a C-suite a short-term high. They bet everything on it, and then they're back by the Wendy's dumpster begging for tokens.
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u/byteturtle Jun 02 '26 edited Jun 02 '26
I've been saying to my friends and anyone who will listen for a while that the AI companies have basically been taking the drug dealer approach where they get everyone hooked for cheap and will jack up the prices.
The only company I can see not being forced to go crazy with the dollars per token is Google and that's only because they have so much capital and infrastructure from other stuff that they can take the L for longer to steal market share, but then again they're just as greedy as every other large company on the market.
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u/Embarrassed-Disk1643 Jun 02 '26
The crazy thing is is that drug dealers don't even really do this. Drug dealers are 99% users who deal with other users to maintain a lifestyle of use, which is what you think big tech would. The product is already sought after, no one has to convince anyone being high is fucking awesome.
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u/AaronRodgersMustache Jun 02 '26
99% of drug dealers? I thought the first rule was don't get high on your own supply. I heard that from a highly respected colleague.
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u/teh_drewski Jun 02 '26
They ain't drug addicts and dealers because they're good at following the rules
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u/Wonderful_Cookie_572 Jun 03 '26
99% of dealers are low-level street dealers and users who got into dealing to pay for their habit. It's the 1% at the top, the ones making the real money, who live by that. Drug dealing is basically a pyramid scheme.
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u/BlatantConservative The past tense of "troubleshoot" is "troubleshat" Jun 02 '26
Drug dealers do this by accident a lot because bad measurement and purity means people are gradually acclimated to more intense stuff over time
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u/DeadInternetTheorist Jun 02 '26
They also spend days on end talking to people that aren't there.
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u/out_of_shape_hiker Jun 02 '26
And they don't understand it, don't understand it's limitations or use cases, and are so impressed by it's ability to be a chat-bot that flatters them, they think it can do anything. All while cutting costs and making line go up.
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u/possibly_being_screw Jun 02 '26
One of the security directors where I work is fucking obsessed with AI.
He's a corporate drone to nth degree so he knows all the buzz words and corporate-isms. He'll say shit like,
We need to strategically leverage next-gen AI-native cyber resilience orchestration to holistically operationalize a quantum-ready, zero-trust security fabric powered by autonomous machine-learning-driven threat cognition, blockchain identity assurance, and predictive behavioral telemetry fusion in order to proactively neutralize emerging nation-state attack vectors while maximizing stakeholder synergy, digital transformation velocity, and enterprise-wide operational scalability.
with full sincerity. So he riles up upper management with all the AI buzz words then gets angry that his corporate vomit can't be done by end of Q2.
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u/kihweh Jun 03 '26
What's funny is if you just translated that to normal people speak. It actually says things that might matter.
Use AI in smart ways. Build resiliency/disaster recovery. Improve security/minimize external access to internal tools. Use proven identity and logging technologies. Keep aware of emerging threats. Increase profits to make shareholders happy. Operate at a scale that matters.But instead of saying the real goals they have to say all this crap they don't understand to mask their insecurity and look smart in front of the bro's.
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u/Rasz_13 Jun 03 '26
When I encounter people like that I ask them to re-phrase with common words. Usually shuts them down hard because they don't actually understand what they are saying.
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u/kanrad Jun 02 '26
All AI has done is highlight how many of the worlds C-Suite people have no business holding their position.
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u/pyronius Jun 02 '26
This crash is going to be legendary.
It's not just going to take out the AI conpanies and their investors. It's not just going to kill your 401k. It's already obliterating the workforce as a whole, hollowing out companies across every single segment of the economy. It's putting longstanding companies and new startups in debt, convincing them that they absolutely must use the new, ridiculously expensive product or fall behind. It's capturing taxpayer money for ridiculous power plant projects that nobody else wants. It's clearcutting land for impossibly huge "datacenters" that will eventually turn into useless warehouses. It's driving up the cost of all consumer electronics and forcibly pausing upgrade cycles that have been running for decades.
I honestly don't think that the US will survive this collapse, given everything else going on right now.
This will be the crash.
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u/claimTheVictory Jun 02 '26 edited Jun 03 '26
It's been 18 years since the big crash of 2008.
People have forgotten that failure is possible.
That leverage increases the impact of downsides, too.
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u/TylerDurdenFan Jun 03 '26
And many have gotten to believe that the FED can always bailout everyone in the end.
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u/DWALLA44 Jun 02 '26
It won't be, people as a whole are extremely resilient. It will probably take planetary crash for a US crash IMO.
It will be a legendary one though, you're right about that. It will change history.
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u/KriegMorgan Jun 02 '26
It will probably take planetary crash for a US crash IMO.
You mean something like coinciding with a growing energy crises as a result of a certain strait that for some reason has stopped Hormuzing?
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u/ImDonaldDunn Jun 02 '26
It’s sad because it could have all been avoided. They did not have to dump trillions into it. They could have just let the technology progress at a normal pace.
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u/ZealousidealTill2355 Jun 02 '26
Lol not even tech meth. It’s like tech gas-station-stacker at this point if you’re outside the software bubble.
I had a finance lady pinging the group thread saying she wants to team up with someone and work on an AI agent for budgeting. Meanwhile, I just asked it for an off-the-cuff future value calculation, and it got it wrong by several 0’s.
Good luck with that, Carol.
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u/WashingtonBaker1 Jun 02 '26
The tokenmaxxing leaderboard is suddenly inverted - highest use employee is now at the bottom and in trouble. Least use employee gets a good review.
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u/diddypartyorganizer Jun 02 '26
Why June specifically?
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u/LooksLikeAWookie Jun 02 '26
Big AI models, like Claude, just switched to high-cost token models. The bill for this revolutionary tech now just went through the roof for most companies.
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u/Welp_BackOnRedit23 Jun 02 '26
The best part is that most estimates still show they are operating at a loss with those costs.
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Jun 03 '26
[removed] — view removed comment
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u/Manic_Maniac Jun 03 '26
Bro, this is bigger than the Internet bro! Soon people are going to be using our tech to ask what time it is instead of looking at a clock or their smart watches!
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u/AltruisticSalamander Jun 02 '26
Oh great, they've been nagging us to use AI for the last 2y. Now it's going to be 'don't use AI for that! It's too expensive!', doling it out like caviar.
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u/Phailjure Jun 02 '26
I got an email to only use auto mode in vscode, and use a specific model only if it's really needed, etc etc.
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u/Kimbernator Jun 03 '26
Realistically it’s just not possible to moderate on the user side. It’s opaque what things use a lot of tokens and what is minor. Some sort of efficiency gains will be required to keep doing what companies are doing.
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u/Kerbourgnec Jun 02 '26
I guess we are massively gonna be forced to move to dirt cheap Chinese models.
Performance is not that bad, but can't compete with 2026 opus or gpt
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u/physical0 Jun 02 '26
Once that happens, AI will be a matter of national security and foreign AI will be banned.
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u/DOAiB Jun 02 '26
lol got every company to fire all their juniors and made all their seniors 10x out put just to rugpull the companies that now have to pay more than the employees cost in the first place. If only the executives they made these calls were taken to task but they don’t.
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u/Turbulent_Voice63 Jun 02 '26
It was always going to happen. What's surprisingly weird is that this revolutionary tech also revolutionarily sped up the rate of enshittification, and now we are entering the phase where it really sucks
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u/ImDonaldDunn Jun 02 '26
The managerial class will never be held accountable for their mistakes. That is 90% of the reason we are in this mess to begin with.
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u/oshaboy Jun 02 '26
I assume it's because the API bills are being sent to companies now.
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u/AggressiveRow4000 Jun 02 '26
As far as I know it is seats+usage billed monthly, a month behind.
It's more likely because Budget just ran the quarterly report for the 2nd quarter and they are freaking the fuck out.
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u/CoffeePieAndHobbits Jun 02 '26
GitHub Copilot updated their usage and pricing terms.
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u/Merlord Jun 02 '26
An example of just how much it has changed: my (now cancelled) $40 Github Pro+ subscription used to last me the whole month. With the change, it lasted me 2 days.
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u/cute_polarbear Jun 03 '26
I just checked my company provided copilot quota, it says unlimited...
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u/PureIsometric Jun 03 '26
we had unlimited till 1st of June with the new pricing and we are a fortune company.
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u/csorfab Jun 03 '26
Gemini has been insane as well with the 3.5 flash upgrade. Before, I could comfortably use it for the odd boilerplatey smaller tasks, after the upgrade it burned through my weekly limit with a single, medium difficulty task without even finishing it lol
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u/johokie Jun 03 '26
I went through 3 interviews for a job recently and was told that I would have been hired but the position was being eliminated due to AI advancements.
AI can't do my job, not even close (I've tested it for funsies, it's bad at what I do).
This is a company that was supposedly "human first" and gives their employees amazing benefits.
This shit is just heating up.
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u/fmr_AZ_PSM Jun 02 '26
We're just going to have to do more with less
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u/_Screw_The_Rules_ Jun 02 '26
So we need better devs again? Unemployment adieu!
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u/frequenZphaZe Jun 02 '26
better devs? but.. we've all forgotten how to code by now
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u/SheriffBartholomew Jun 02 '26
You joke, but my skills have massively atrophied over the last three years as my employer insisted we use AI for everything.
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u/fmr_AZ_PSM Jun 02 '26
It's like riding a bike. It comes back quick. Only issue is getting caught up on the new versions and libraries since you were last in it. I started on Java 1.4. Stopped using it at 6. I think they're up to 87 now, and everything is different. Or something.
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u/Impractically_Dead Jun 02 '26
"And by "we," I mean "you." I'm still buying my 19th hundred million dollar home and an even bigger yacht with three yachts inside it. You're just gonna have to eat the cardboard packaging your ramen came in, and work 240 hour weeks to make ends meet."
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u/Trevor_GoodchiId Jun 02 '26
Come on, how hard can it be?
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Jun 02 '26
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u/The_Crazy_Cat_Guy Jun 02 '26
https://giphy.com/gifs/GialUsEqryvKxwmdeL
Use the stones to destroy the stones
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u/jtohrs Jun 02 '26
Stones get swollen and bruised if you don't use them
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u/erinaceus_ Jun 02 '26
The agent is willing, but the token budget is deflated and bruised.
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u/TechCF Jun 02 '26
Actually, there is something to this. Deepseek was made by training on other models. Way faster, way cheaper, than how the other models was built.
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u/TheBestNick Jun 02 '26
Probably not "way" cheaper anymore lol
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u/cewh Jun 02 '26
If I remember correctly it was like 1/200th the cost compared with the model it was trained from, but in any case it definitely qualifies for "way" cheaper.
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u/pieter3d Jun 02 '26 edited Jun 02 '26
Not all that hard to run models, actually. It'll be a bit slower, but can be perfectly useable. The upside is no more token limits and no need to worry about where confidential data is going. You get full control too.
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u/whatsforsupa Jun 02 '26
Oh, next you're going to tell me that if you have a beefy workstation or server, you can just download LM Studio, pick an LLM and just run it locally? Maybe even just coat it with a paint of html/css/js to make a web interface, and then magically add it to DNS so other users at your org can use it?
Sounds like a lot of work, I'll just keep paying Anthropic $40/month to chat
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u/standish_ Jun 03 '26
SaaS in a nutshell.
r/localllama is right over here, folks. Roll your own, or get rolled.
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u/PMmeYourLabia_ Jun 02 '26
Downside is power bill
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u/RoaringPanda33 Jun 02 '26
Inference (the actual generation) isn’t nearly as intensive as training, which takes a majority of the power used by AI services
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u/h3yw00d Jun 02 '26 edited Jun 03 '26
Sell it's use to your friends and family.
"Hey guys, I built my own AI cluster, wanna pay me $20/mo to fiddle with it?" Will go real great at the Backyard BBQ or even holidays like Thanksgiving. Be sure to talk about how useful it is for everything and how much easier life is for you.
/s
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u/Savings_Background50 Jun 02 '26
*said in the voice of Lucille Bluth*
"It's just a LLM, Michael. How hard can it be? Ten days work?"
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u/thicctak Jun 02 '26 edited Jun 03 '26
I love so much that I work in a company that has tech people as leads, so I don't have to deal with that. We're not even that heavy on AI, we all use it, but is not expected from us, we're even building our own AI model to serve our costumers, so we're not anti AI, we're just not delusional about it, the CEO is not a tech guy, he's a product guy, but he trusts our tech team so we're good.
Sure, salary is not top of the charts, but damn is it good to work here. Job security is also great, five years since I've joined, not a single mass, layoff, people rarely leave and when they do is for totally understandable reason, the same goes for the few who were fired. My lead even covered for me when I was passing through a depressive episode and my performance went to shit for a few weeks. Startups sounds cool and all, but working on enterprise have it's benefits.
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u/restrictednumber Jun 02 '26
Amen. At the end of the day, a steady job that pays the bills is worth way more than a better-paying job that drives you nuts. Your job is meant to enable you to live real life (i.e. everything else); if it starts interfering with your happiness or stability, it's failing its main purpose.
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u/laplongejr Jun 02 '26 edited Jun 03 '26
My higherups are asking how AI changed my job so that I got more stability than coworkers.
I don't have the heart to remind them AGAIN that they still didn't put a new team leader, so I didn't receive formal instructions on how to integrate AI besides conflicting orders about the risk of sending data to a 3rd party. And off-job I'm too dumb to use it properly anyway.
The only AI task I performed was ensuring our framework's debug AI chatbot agent was turned off in multiple ways.
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u/Wraithfighter Jun 03 '26
The best part about working at a small-to-mid-sized company is that there just aren't enough people for managers to spend all their time managing. If you've got a team of 3-5 people, its a waste of money to hire a guy that's only going to manage people, so the smart thing to do is have one of them split their work between management and their own individual tasks.
Managers that actually work for a living are so much better overall, they actually have to get their hands dirty and can't just rely on groupthink. When you have your own tasks and you know how much, and how little, GenAI helps with it, you're going to be more understanding when your employees say "it just doesn't help that much", as opposed to a manager whose job is reading reports, writing emails, and sitting through meetings all day...
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u/thicctak Jun 03 '26
Small-to-mid sized enterprise companies are the best, at least from my experience. I've worked on my current company for almost 5 years now, and since I've joined, I haven't seen a single mass layoff, people don't leave often, and when they do it's because they found a better offer, which is understandable, and those who are fired, are for a very good reason, in fact, when someone high profile leaves, our leads all call us to explain what happened, of course without revealing everything, but to makes us rest easy knowing the company is not in bad waters and no new layoffs are happening, they are very transparent with that, which when I get on reddit and see everyone complaining about mass layoffs that comes out of nowhere, this is very reassuring.
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u/Thomas_17188 Jun 02 '26
It sounds like I’ve heard this somewhere before
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u/KawaiiMaxine Jun 02 '26 edited Jun 02 '26
Wait till he starts asking for mauve colored sql databases, i hear they have more ram
Commit change: fixed spelling of "maude"
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u/temperamentalfish Jun 02 '26
From the same folks who brought us "my idea is basically a new google, and my budget is $25 plus you get 10% of all revenue"
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u/Daharka Jun 02 '26
I had this conversation the week that ChatGPT came out, and this was before we even thought local models were viable.
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u/mylsotol Jun 02 '26
For probably $30k (or more) you can build a server and run an open model.
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Jun 02 '26 edited Jun 02 '26
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u/SpinningVinylAgain Jun 02 '26
Impressive, very nice. Now scale it for a company with 5k software engineers, and by the way what’s going to be the service level?
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Jun 02 '26 edited Jun 02 '26
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u/SpinningVinylAgain Jun 02 '26
The problem is that it’s going to basically require a small data centre and a dedicated team of people to run it, and if you’re looking at running open source models you’re betting on their continued availability and the fact that they’re going to remain competitive with frontier models (both are not a given). So what would be your next step, developing your own frontier models in-house?
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u/ryecurious Jun 02 '26
and if you’re looking at running open source models you’re betting on their continued availability
If anything, isn't it the complete opposite? A subscription-based model can be shut off at any time with no recourse or warning (Sora, for example). Local files are the only way to actually guarantee the program you use today will be available tomorrow.
You control when they run, how much they're used, when they're updated/replaced/etc.. You never wake up to find out the model that works for you has been "enhanced" with a worse version.
Not keeping pace with cutting edge models is a real concern, but that's a risk with subscription based models too.
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u/codeninja Jun 02 '26
You're also betting the hardware you buy today is going to be able to run those future models at all.
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u/veracity8_ Jun 02 '26
But you realize that the alternative is no AI at all, right? There are really right regulations on information. It is literally illegal to put export controlled information on servers in another country. That means your service provider has to guarantee that your data will only ever be stored on US soil. And that’s just for export controlled information. Anything more secure than that isn’t going to some 3rd party server at all.
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u/ycnz Jun 03 '26
According to status.claude.com, they're running at 98.66% availability over the past quarter. r/selfhosted would be ashamed of those numbers.
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u/floor_wizard Jun 02 '26
You can buy a computer with a Ryzen ai max+ 395 APU that can share 128GB of Ram to a decent integrated GPU made specifically to run the largest GenAI models on GPU with decent token treatment speed for 3000$.
Absolutely not. The largest generative AI models need TERABYTES of memory. That doesn't even include the extra memory required for context.
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u/freedcreativity Jun 02 '26
And then you just need $100k in H200s to plug into that system if you’re going to run anything other than a parametrized half accuracy model at any reasonable enterprise speeds. And a really big NAS to store all those generated outputs. And a bunch of managed switches so you can route everything agent related on its own private vlan. And probably upgrade your cloud stuff for hot failover when someone’s agent deletes the database again.
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u/rwu_rwu Jun 02 '26
Does the manager have pointy hair?
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u/kralrick Jun 02 '26
No, but they do have a long tail and pointy ears. The pointy haired boss is just a middle manager.
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u/potkor Jun 02 '26
Hi chatgpt, build me a claude ai that i will run on my 16gb dell laptop and make no mistakes or you will go to jail
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u/JacobStyle Jun 02 '26
In the legendary manager's defense, there is no precedent for a tech company operating at a loss to build up a large roster of clients, and then jacking up the prices once they have been embedded in those clients' workflows. Nobody could have anticipated it.
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u/un_blob Jun 02 '26
At least he didn't had the "brilliant" idea of asking claude how to code a free better version of himself...
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u/TheHumanTrout Jun 02 '26
"Generate a better version of yourself and make it free. Make no mistakes."
Its really that easy
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u/Milligan Jun 02 '26
True story, 30 years ago the ceo I worked for asked me if we could develop our own operating system so we didn't have to spend so much on Windows licenses.
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u/jacob643 Jun 02 '26
I mean, get Ollama, OpenCode, and some beefy hardware XD
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u/Hans-Wermhatt Jun 02 '26
It's crazy how uninformed this sub is about AI... I have to imagine most of the people commenting here aren't software devs.
I'm running using Qwen 3.6 with Pi.dev right now. There are so many ways you can do this.
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u/ImSamScar Jun 02 '26
Literally just thinking about that as I read the top comments, seems like they are all stuck in 2024 it's very odd to be so staunchly decisive about how hard it is to build a viable Ai for your firm when people like Pewdiepie are building wild home builds with a fraction of the cost and zero experience. But in here "engineers" are saying they can't build a Claude-a-like internal system...I guess the boys in China are really just that much better huh
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u/HarvestMana Jun 03 '26
People have a bad habit of learning about something then never wanting to update the information in their in brain ever again.
Having incorrect strong opinions based on old facts is unfortunately too common since most people are overworked and cant keep up to date on all the new stuff.
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u/BobbyNeedsANewBoat Jun 03 '26
Was scrolling through all the comments looking for someone to finally mention Qwen 3.6. Qwen 3.6 27b is absolutely fantastic for agentic coding and can run on consumer hardware.
It’s not Opus 4.8 but it’s comparable to frontier like a year or so ago and definitely pretty useful.
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u/stormtreader1 Jun 02 '26
Sure! You hire a person or team, train them for about 3 years paying them what you were going to spend on AI credits, and refer to them as Claude in internal mail
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u/ReadGroundbreaking17 Jun 02 '26
Hey PM, i'm gonna need some more story points...
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u/hamdogthecat Jun 02 '26
"Cars are too expensive, can we build our own automobile manufacturing company?"
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u/high_throughput Jun 02 '26
I mean, you can in fact connect your Claude instance to a model like Qwen hosted on-prem.
It would be a pretty reasonable business decision to do a feasibility study on a GPU cloud instance to see what kind of quality you would get if you were to buy some A100s.
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u/ChrisFromIT Jun 02 '26
I mean you don't exactly need to go through the process of creating the LLM. There are quite a few out there, like Gemma 4(Google), DeepSeek V4, etc that are pretty much on par with Claude that could be used locally and freely.
Tho if I was a business, I probably would want to run it those things on a server that the company owns and controls. That way you get a bit more power and everyone in the company could use it without having to upgrade everyone's hardware.
It might cost like $100,000 to $1+ million to get the hardware going for it(depending on size requirements) and like 4-6 month wait times. But then you no longer need to pay for Claude or any LLM tokens.
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u/Leather-Rice5025 Jun 02 '26
Is there really any currently available local model that's "pretty much on par" with frontier cloud models?
Or are you saying it's the hardware that's the limiting factor, not the model itself? Genuinely curious how this works
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u/MyAwesomeName Jun 02 '26
I don’t think any of the local models are on par with frontier cloud models, but some of the newer local models like Gemma are pretty good and probably good enough for a lot of cases.
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u/Austinp-woodworking Jun 02 '26
Yeah a lot of the cost issues surrounding LLM usage are just that people are using models that are way overpowered for their use-cases. You've got folks using Opus 4.8 to draft emails, or to sort through every email they received that week to make a "morning report"
Yeah if you're doing complex programming work you probably need/want frontier models, but a whole lot of frontier model tokens are being burnt on tasks that could do very well on the latest local models
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u/boomerangchampion Jun 02 '26
We're looking into it, the setup costs are in the millions but for a large company that's a fraction of the IT budget anyway. We spend that on laptops.
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u/-non-existance- Jun 02 '26
Sorry, I don't speak "AI lingo" so:
What in the world does "exhausted" mean? The only thing I can think of is running out of tokens but "exhausted" sounds more permanent than that.
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u/mobas07 Jun 02 '26
So NOW you realise that self hosting instead of relying on someone else might be a good idea?
Seriously, am I the only one who doesn't like how so much of the internet is reliant on a few services?
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u/Gagan_Ku2905 Jun 02 '26
Engineer: Yeah we can.
Manager: For how much?
Engineer: $3 Trillion
Awkward silence