Latest updates for Ai Diminishing Returns

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Recent items include:

  • AI’s ceiling: intelligence, too, faces diminishing returns
  • Unlike internet's one-dimensional, flat-fee growth, AI grows across two exponentials, user penetration and tokens per us
  • The AI Colander

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asiatimes.com /1 month ago

AI’s ceiling: intelligence, too, faces diminishing returns

“[I]ntelligence, that counterentropic conjoined twin of information, must become the most powerful force in the universe, the energy to which all other physical laws must eventuall...

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techmeme.com /1 week ago

Unlike internet's one-dimensional, flat-fee growth, AI grows across two exponentials, user penetration and tokens per us...

Fin / @fi56622380: Unlike internet's one-dimensional, flat-fee growth, AI grows across two exponentials, user penetration and tokens per user, allowing AI labs' economics to work ...

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tomtunguz.com /1 month ago

The AI Colander

AI customer retention sits between mobile games and social networks. Frontier models keep the crown for about 41 days, and the price of a given level of intelligence falls roughly...

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tomtunguz.com /1 month ago

AI Engineering Productivity is Anything But Normal

AI engineering productivity outcomes cluster in three tiers: a mean of 20-46% from distributing an IDE, a frontier of 2.5-3x from companies building the operating layer around agen...

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tomtunguz.com /1 month ago

AI Engineering Productivity is Anything But Normal

AI engineering productivity outcomes cluster in three tiers: a mean of 20-46% from distributing an IDE, a frontier of 2.5-3x from companies building the operating layer around agen...

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johndcook.com /11 hours ago

AI is an intelligence multiplier

A rising tide may lift all boats, but the AI tide lifts some boats much more than others. By all accounts, the best programmers have had the biggest productivity boost from AI. And...

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digitalthoughtdisruption.com /1 month ago

AI Business Value Drift: When Model Quality Holds but the ROI Quietly Disappears

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venturebeat.com /1 month ago

DeepSeek cut prices 75%. The 100x problem remains

DeepSeek's recent decision to drastically cut pricing on its V4-Pro model by 75% should have been unequivocally good news for enterprise AI vendors and developers. Instead, many ar...

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tomtunguz.com /1 month ago

AI Harness' ARR Multiples

Three AI companies crossed $100m ARR within nine months & were valued at 50x, 56x & 100x revenue. Growth rate does not explain the gap: the fastest grower priced near the b...

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tomtunguz.com /1 month ago

AI Harness' ARR Multiples

Three AI companies crossed $100m ARR within nine months & were valued at 50x, 56x & 100x revenue. Growth rate does not explain the gap: the fastest grower priced near the b...

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nextbigfuture.com /3 weeks ago

Scaling AI and Getting More Efficient

Kaplan/Chinchilla scaling laws provide a broad description of the resources needed to improve AI. The measured relationship is that loss falls as a power law in compute: L ≈ L∞...

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econbrowser.com /1 month ago

AI Related Imports Flattens Out, Investment Decelerates

Approximately, as we don’t have direct observations on items solely related to AI. Figure 1: Imports of computers, computer peripherals, plus semiconductors (blue, left log scale),...

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uxtigers.com /1 month ago

AI Turns Competence into a Commodity: Evidence from 2.26 Million Freelance Contracts

AI narrows skill gaps by helping weak performers the most. Employers are reacting: hiring in AI-exposed job categories now weights human capital 7.8% less and price 1.1% more than...

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fastcompany.com /1 month ago

The AI ‘tokenmaxxing’ corporate fad is fading as workplaces look to cut costs

A corporate fad of “tokenmaxxing” on artificial intelligence technology is hitting its limits as workplaces throwing AI at everything are seeing the costs rise without a similar sp...

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toledoblade.com /1 month ago

Workplaces look for cheaper AI as ‘tokenmaxxing’ fades as a corporate fad

A corporate fad of “tokenmaxxing” on artificial intelligence technology is hitting its limits as workplaces throwing AI at everything are seeing the costs rise without a similar sp...

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theregister.com /1 month ago

Too many AI agents can get in each other's way

For enterprise agents, less is more

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thehindubusinessline.com /1 month ago

AI productivity offsets wage hikes, supports IT margins in Q1

Experts say AI models help firms optimise their workforce and utilisation

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fastcompany.com /10 hours ago

The underwhelming results of AI performance metrics should surprise exactly no one

Somebody at Meta built an internal leaderboard called Claudeonomics. It ranked the company’s top 250 consumers of AI tokens and handed out titles like “Token Legend” and “Cache Wiz...

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asianefficiency.com /4 weeks ago

The Side Quest Theory of AI Learning (Why ROI-First Thinking Keeps You Stuck)

The people getting really good at AI aren't measuring every experiment against immediate ROI. They're doing side quests — and here's why that compounds into real skill.

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tomtunguz.com /2 weeks ago

The AI Bullwhip

AI hardware bottlenecks cascade in sequential multi-year waves from GPUs to memory, SSDs, CPUs, HDDs, and physical data center shells, driving facility buildout costs to $20b per g...

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tomtunguz.com /2 weeks ago

The AI Bullwhip

AI hardware bottlenecks cascade in sequential multi-year waves from GPUs to memory, SSDs, CPUs, HDDs, and physical data center shells, driving facility buildout costs to $20b per g...

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danielharper.org /1 month ago

How to reduce your AI consumption

I know, most people now use AI reflexively, without even thinking about it. But some of us are trying to reduce our AI consumption. In my case, I want to lessen my energy consumpti...

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techcrunch.com /11 hours ago

AI spend per employee slumped at top firms in August — summer doldrums or a warning sign?

Falling token costs, cheaper models, and less spend per employee—AI adoption isn't playing out the way hyperscalers hoped.

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hbr.org /1 month ago

AI and the Looming Competition for Margin

<p>If industries achieve productivity growth with AI, they’ll likely also see fierce price competition and margin erosion.</p>

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Sources covering Ai Diminishing Returns

econbrowser.com

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feeds.feedburner.com

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feeds.hbr.org

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asianefficiency.com

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asiatimes.com

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blogs.vmware.com

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