That pretty much tells you how this will end, right there.
x=www.washingtonpost.com
{
printf 'GET /technology/2026/02/07/ai-spending-economy-shortages/ HTTP/1.1\r\n'
printf 'Host: '$x'\r\n'
printf 'User-Agent: Chrome/115.0.5790.171 Mobile Safari/537.36 (compatible ; Googlebot/2.1 ; +http://www.google.com/bot.html)\r\n'
printf 'X-Forwarded-For: 66.249.66.1\r\n\r\n'
}|busybox ssl_client -n $x $x > 1.htm
firefox ./1.htmEvery week in 2026 Google will pay for the cost of a Burj Khalifa. Amazon for a Wembley Stadium.
Facebook will spend a France-England tunnel every month.
If AI is here to stay, as a thing that permanently increases productivity, then AI buying up all the electricians and network engineers is a (correct) signal. People will take courses in those things and try to get a piece of the winnings. Same with those memory chips that they are gobbling up, it just tells everyone where to make a living.
If it's a flash in a pan, and it turns out to be empty promises, then all those people are wasting their time.
What we really want to ask ourselves is whether our economy is set up to mostly get things right, or it is wastefully searching.
*written by AI, of course
Singapore is an IQ shredder. It is an economically productive metropolis that
sucks in bright and productive minds with opportunities and amusements at the
cost of having a demographically unsustainable family unit.
Right now, AI is a "capital shredder". In the past, there were barriers everywhere, and we've worked hard to tear those down. It used to be that the further the distance (physically, but also in other senses too, like currencies, language, culture, etc.), the greater the friction to capital flows. The local rich guy would start a business in his town. Now he sends it to one of the latest global capital attractors, which have optimized for capital inflow. This mechanism works whether the attractor can efficiently use that capital or not. That resource inflow might be so lucrative, that managing inflow is the main thing it does. Right now that's AI, but as long as present structure continues, this is how the machine of the global economy will work.
The AI boom is just like a conference- where new and shiny seems to do wonders, but when you come back to workplace, none of that seem to work or fit in!
- bigger TV, my "old" not even 4K video projector is enough
- faster phone with more memory or better camera, my current one as "just" 5G, is enough
- faster laptop/desktop, I can work on the laptop, game on desktop
- higher resolution VR headsets (but I'll still get a Steam Frame because it's more free)
- denser smart watch, I'm not even using the ones I have
... so, the situation is bad, yes, and yet I don't really care. The hardware I have is good enough and in fact regardless of AI I've been arguing we've reached "peak" IT few years ago already. Of course I wouldn't mind "better" everything (higher resolution, faster refresh rate, faster CPU/GPU, more memory, more risk, etc). What I'm arguing for though is that most "normal" users (please, don't tell me you're a video editor for National Geographic who MUST edit 360 videos in 8K! That's great for you, honestly, love that, but that's NOT a "normal" user!) who bough high end hardware during the last few year matches most of their capabilities.
All that being said, yes, pop that damn bubble, still invest in AI R&D and datacenters, still invest in AI public research for energy, medicine, etc BUT not the LLM/GenAI tulip commercial craze.
"Smart" phones have ceased to be smart years ago. They are now instruments of mass surveillance, and the tech industry has convinced people that 1) you need one not to be a social outcast, 2) you need to upgrade it every year, 3) not having root access is for your own good.
I'll stick to my Pixel 9a running Graphene for the forseeable future.
It implies that expectations and capital allocation have significantly outpaced realistic returns, leading to painful corrections for bulls.
And with AI, a classic bubble signal is emerging: widespread exit-timing instead of deep, long-term conviction.
My local (urban) residential electricians aren't even busy -- they are booking less than a week out. By contrast, just last year they were booking six weeks out. The fall in EV infrastructure demand due to eliminated incentives might be impacting them more than additional data center demand.
Gen pop can diversify its skillset, become more independently self sufficient as a result, rely on/require less money overall, and realize they don't really need to listen to rich tech CEOs which will implode their value politically.
SaaS jobs were about little more than agency control and now they're losing that control.
Where's the "boom?" Doesn't that imply a bunch of people are getting rich off of new business?
Where are those?
Think of the PC gamers, who first dealt with COVID supply shocks, followed by crypto making GPUs scarce and untenable, then GPU makers raising prices and narrowing inventory to only the highest-end SKUs, only to outright abandon them entirely for AI - which then also consumed their RAM and SSDs. A hobby that used to be enjoyed by folks on even a modest budget is now a theft risk given the insane resale priced of parts on the second-hand market due to scarcity.
And that extends to others as well. The swaths of folks who made freelance or commission artistry work through Patreons and conventions and the like are suddenly struggling as customers and companies spew out AI slop using their work and without compensation. Tech workers, previously the wealthy patron of artisans and communities, are now being laid off en masse for AI CapEx buildouts and share pumps as investors get cold feet about what these systems are actually doing to the economy at large (definite bad, questionable good, uncertain futures).
Late stage capitalism’s sole respite was consumerism, and we can’t even do that anymore thanks to AI gobbling up all the resources and capital. It’s no wonder people are pissed at AI boosters trying to say this is a miracle technology that’ll lift everyone up: it’s already kicking people down, and nobody actually wants to admit or address that lest their investments be disrupted to protect humans.
Now if the LLMs could modify their own nets, and improve themselves, then that would be immensely valuable for the world.
But as of now, its a billionaires wet dream to threaten all workers as a way to replace labor.
I see a future where most people will buy tablets to save money and the desktop will be for only a few, a very few, just when self-hosting is becoming trendy and people are saying "it's time for GNU/Linux to take Windows' place"...