"Companies are plowing money saved from layoffs into building data centers, betting that A.I. workers will be faster and more efficient than human labor."
"A venture capitalist noted that many A.I. start-ups are spending more on A.I. tools than on payroll, indicating a significant shift in investment priorities."
"Meta has faced challenges with A.I., having to abandon its Behemoth model and delaying the release of Avocado due to underperformance."
Companies are increasingly reallocating funds from human labor to A.I. infrastructure, anticipating that A.I. will be faster and more efficient. This shift involves significant investments in data centers, with some A.I. start-ups reportedly spending more on A.I. tools than on payroll. However, the effectiveness of A.I. remains uncertain, as evidenced by Meta's struggles with its A.I. models, including the abandonment of Behemoth and delays in releasing Avocado due to performance issues.
Read at www.nytimes.com
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