humanspiral

Also Cursor (recently bought by spacex for $60B) "stole" not only the entirety of kimi 2.5, but all of their users data to train its composer models ontop of kimi 2.5.

article ignores the circular financing bubble. It layers on top all of the hidden costs in servicing their fake revenue and fake stock valuations.

A bigger factor in AI fraud economy, is the circular fake assets and fake revenue. $1T valuations in top 2 LLM providers implies $50B-$100B eventual recurring profits with little to no reinvestment. $1.75T SpaceX valuation was based entirely on fraud of at least 5x more expensive space data centers than earth and supposed 90% of value of company is based on Grok enterprise TAM. IPO was boosted with fake Anthropic paper lease where they were renting gpus for 5x the cost, and over 2x the list price of on demand rates from Nebius/coreweave, but with instant cancel clauses, and "first 2 months free" scam. 11th hour similar Google deal (who owns 6%+ of spacex) further amplified the SpaceX fraud IPO.

The main circular fraud though, is most of the companies (Nvidia not mentioned) in article put an inflated asset on their balance sheet, while trading revenue credits for those investments. Article's "footnote debt" is largely to serve those revenue credits.

There is no evidence of "theft"/distillation by latest models. Anthropic's original allegations were weak against deepseek. When someone publishes vibe code to github, it's not theft from the LLM to train on it. Repeating loser whinning often enough to make it US dogma, doesn't make it truth. China is a short fuse away from sinking US fleet blockading Iran.

I don't get the general criticism. It will all depend on details. If you can "rent" a $1000 device for $500 in payments over 2 years, and have the option to pay $500 at end of 2 years, or pay $250 over the next 2 years, then that is a better deal for you, including the delayed payments, and your optionality. If rampocalypse is over in 2 years, you can get a better device. How far away from the above formula implementation is matters though.

An advantage with buying a "good phone" is that Apple needs to keep their trade in incentives high to get you to upgrade later. Lease provides a clear upfront proposition instead of hoping for future Apple generosity.

1. hype frenzy is based on doubling every few months.
2. OpenClaw frenzy turned out to be very expensive for limited benefit, with security concerns/failures. No big new hype agent app.
3. "Tokenmaxing is good for you" only made sense before you got the bill.

The AI hype/scarcity frenzy (bubble) was based on Meta and xAI hoarding GPUs for themselves instead of reselling compute, making it abundant instead of scarce. All of the other datacenters were hoping to have them as customers instead of competitors.

2 lies in article:

1. byline "proves compute is scarce" is opposite. This is not a real datacenter rental deal. It is a "can quit anytime" show deal. Token consumption is down 20% since march peak.

2. "Compute costs are rising exponentially". Blatant lie, in terms of compute pricing $/gpu hour. Rates are near their accounting floor (though not at rock bottom) for H series, and the faster newer cards are just 2x the $/hour instead of the 8x saturated performance difference.

You see... the previous corrupt process was only a problem not because doors were falling off planes mid air, but because that happened recently enough for you to remember it tied to the corrupt process. If Boeing isn't allowed to sell cheaply made death traps, then China and Iran win.

This seemed more alarming news: AAI is tracking IPs/proxies/vpn, timezones on requests.

https://tech.yahoo.com/ai/claude/articles/anthropic-caught-secretly-spying-users-204222066.html

While it is explained as "only to accuse China of evil", its tracking everyone, and empowers US government crackdowns on anyone either AAI or US doesn't like.

For last 5 quarters, Nvidia has sold much more GPUs than get installed. On 3 year depreciation schedule, 8xh200s are $1.50/hour per card just sitting there. B200s are $2/hr. (Nvidia changes network cable each generation). Very expensive to do what you are suggesting is happening, but only other explanation is smuggling into China, or secret sovereign/military purchases.

It's also possible that they are lent to tier 2/3 datacenters in revenue share deals.

The fundamental lie behind the AI fraud is that compute is scarce relative to demand. OpenAI, Grok, Meta did overinvest in hoarding GPUs far ahead of their usage. Last 2 are now competing on hourly GPU market, and AI tokens/revenue has fallen 20% since spring peak, which is a bubble pop compared to 10x/year perpetual growth expectations behind the hoarding. While hourly gpu rental market is stable rather than declining, it is stable at very low prices, mostly for accounting reasons of not actually losing money intentionally. Deployed GPUs are abundant proven by accounting floor based pricing. A b300 can deliver 8x the tokens of an h200 but only rents for 2x more.

most of the fuel weight required is to lift the rest of the fuel. Fuel costs is about $1m for full load. Rest of cost is huge staff, maintenance, and capital cost of rocket.