Ricardo@Ric_RTP
Nvidia just admitted that "AI efficiency" is a LIE.
Every major tech company is doing the same thing right now:
Firing humans and replacing them with AI to "cut costs." 92,000 tech workers laid off in 2026 so far.
Every single earnings call sounds the same: "AI is driving efficiency."
But the VP of Applied Deep Learning at Nvidia, the company that literally SELLS the AI infrastructure, just told Axios:
"For my team, the cost of compute is far beyond the costs of the employees."
The man whose entire job is making AI work admitted that AI costs his company MORE than the humans it's supposed to replace. And he doesn't work at some struggling startup. We're talking about the most valuable company on Earth.
An MIT study backs this up too:
Researchers analyzed whether AI could actually replace human workers at a competitive cost and found that AI automation only makes financial sense in 23% of jobs. In the other 77%, humans are still cheaper.
So companies are firing cheap labor and replacing it with expensive labor, then telling shareholders it's "innovation."
But it gets even WORSE...
Uber just revealed that they burned through their ENTIRE 2026 AI budget in 4 months.
Their CTO said: "I'm back to the drawing board because the budget I thought I would need is blown away already."
What happened is that Uber gave their engineers access to AI coding tools and encouraged them to use them as much as possible. They even built internal leaderboards ranking engineers by how many AI tokens they consumed, basically gamifying their own budget crisis without realizing it.
By March, 95% of Uber's engineers were using AI tools monthly. 70% of all committed code was coming from AI. Monthly API costs per engineer hit $500 to $2,000.
One software engineer in Stockholm told the New York Times: "I probably spend more than my salary on Claude."
A human being now costs LESS than the AI tool they use to do their job.
And Uber isn't some edge case. Big Tech has announced $740 billion in AI capital expenditures this year alone, up 69% from 2025, according to Morgan Stanley.
Meanwhile the Yale Budget Lab says there is NO widespread data showing AI is actually displacing jobs or improving productivity at scale.
So follow the money:
Companies fire humans
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Stock goes up because "AI efficiency"
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Those same companies spend MORE on AI than they saved on salaries
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That money flows to Nvidia, Anthropic, OpenAI, and Microsoft
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Those companies use the revenue to justify their own insane valuations
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Everyone books growth
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But nobody's actually saving money
McKinsey projects total AI spending will hit $5.2 TRILLION by 2030.
The biggest wealth transfer in modern history is happening right now, and it's not from workers to companies. It's from companies to AI infrastructure providers.
Every dollar "saved" on layoffs is being spent twice over on compute, tokens, and data centers.
Nvidia posted $31.9 billion in profit last quarter. And somebody is paying that bill - the same companies telling their employees that AI made them "redundant."
The entire narrative is a shell game:
CEOs get to announce layoffs, Wall Street rewards them with a stock bump, and then the real cost shows up three months later when the AI budget explodes and nobody connects the two events.
What's your take on this?
