| ▲ | JCM9 3 days ago |
| We are entering the “Trough of disillusionment.” These hype cycles are very predictable. GPT-5 being panned as a disappointment after endless hype may go down as GenAI’s “jump the shark” moment. It’s all fun and games until the bean counters start asking for evidence of return on investment. GenAI folks better buckle up. Bumps ahead. The smart folks are already quietly preparing for a shift to ride the next hype wave up while others ride this train to the trough’s bottom. Cue a bunch of increasingly desperate puff PR trying to show this stuff returns value. |
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| ▲ | highwaylights 3 days ago | parent | next [-] |
| I wouldn’t be surprised if 95% of companies knew this was a money pit but felt obligated to burn a pile of money on it so as not to hurt the stock price. |
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| ▲ | lenerdenator 3 days ago | parent | next [-] | | I also wouldn't be surprised if bean counters were expecting a return in an unreasonable amount of time. "Hey, guys, listen, I know that this just completely torched decades of best practices in your field, but if you can't show me progress in a fiscal year, I have to turn it down." - some MBA somewhere, probably, trying and failing yet again to rub his two brain cells together for the first time since high school. Just agentic coding is a huge change. Like a years-to-grasp change, and the very nature of the changes that need to be made keep changing. | | |
| ▲ | beepbooptheory 3 days ago | parent | next [-] | | "Actually its good we aren't making money, this actually proves how revolutionary the technology is. You really need to think about adapting to our new timeline." You really set yourself up with a nice glass house trying to make fun of the money guys when you are essentially just moving your own goal posts. It was annoying two (or three?) years ago when we were all talking about replacing doctors and lawyers, now it just cant help but feel like a parody of itself in some small way. | | |
| ▲ | Spivak 3 days ago | parent [-] | | How dare the business ask for receipts of value being produced in actual
dollars! Those idiots don't know anything. | | |
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| ▲ | omnicognate 3 days ago | parent | prev | next [-] | | > Just agentic coding is a huge change I've been programming professionally for > 20 years and I intend to do it for another > 20 years. The tools
available have evolved continually, and will continue to do so. Keeping abreast of that evolution is an important part of the job. But the essential nature of the role has not changed and I don't expect it to do so. Gen AI is a tool, one that so far to me feels very much like IDE tooling (autocomplete, live diagnostics, source navigation): something that's nice to have, that's probably worth the time, and maybe worth the money, to set up, but which I can easily get by without and experience very little disadvantage. I can't see the future any more than anyone else, but I don't expect the capabilities and limitations of LLMs to change materially and I don't expect to be left in the dust by people who've learned to wrangle wonders from them by dark magics. I certainly don't think they've "torched decades of best practice in my field". I expect them to improve as tools and, as they do, I may find myself using them more as I go about my job, continuing to apply all of the other skills I've learned over the years. And yes, I do have an eye-wateringly expensive Claude subscription and have beheld the wonders of Opus 4. I've used Claude Code and worked around its shitty error handling [1]. I've seen it one-shot useful programs from brief prompts, programs I've subsequently used for real. It has saved me non-zero amounts of time - actual, measurable time, which I've spent doodling, making tea and thinking. It's extremely impressive, it's genuinely useful, it's something I would have thought impossible a few years ago and it changes none of the above. [1] https://github.com/anthropics/claude-code/issues/473 | |
| ▲ | dingnuts 3 days ago | parent | prev | next [-] | | Sam Altman and company have been promising full on AGI. THAT'S the price shock. Agents may be good (I haven't seen it yet, maybe it's a skill issue but I'm not spending hundreds of dollars to find out and my company seems reluctant to spend thousands to find out) but they are definitely, definitely not general superintelligence like SamA has been promising at all really is sinking in these might be useful tools, yes, but the market was sold science fiction. We have a useful supercharged autocomplete sold as goddamn positronic brains. The commentariat here perhaps understood that (definitely not everyone) but it's no surprise that there's a correction now that GPT-5 isn't literally smarter than 95% of the population when that's how it was being marketed | | | |
| ▲ | potatolicious 3 days ago | parent | prev | next [-] | | > "Hey, guys, listen, I know that this just completely torched decades of best practices in your field, but if you can't show me progress in a fiscal year, I have to turn it down." I mean, this is basically how all R&D works, everywhere, minus the strawman bit about "single fiscal year", which isn't functionally true. And this is a serious career tip: you need to get good at this. Being able to break down extremely ambitious, many-year projects into discrete chunks that prove progress and value is a fundamental skill to being able to do big things. If a group of very smart people said "give us ${BILLIONS} and don't bother us for 15 years while we cook up the next world-shaking thing", the correct response to that is "no thanks". Not because we hate innovation, but because there's no way to tell the geniuses apart from the cranks, and there's not even a way to tell the geniuses-pursuing-dead-ends from the geniuses-pursuing-real-progress. If you do want to have billions and 15 years to invent the next big thing, you need to be able to break the project up to milestones where each one represents convincing evidence that you're on the right track. It doesn't have to be on an annual basis, but it needs to be on some cadence. | |
| ▲ | lubesGordi 3 days ago | parent | prev [-] | | Agreed agentic coding is a huge change. Smart startups will be flying but aren't representative. Big companies won't change because the staff will just spend more time shopping online instead of doing more than what is asked of them. Maybe increased retail spend is a better measure of AI efficacy. |
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| ▲ | generic92034 3 days ago | parent | prev | next [-] | | In Germany there is the additional issue of companies only really starting to invest into the hype when the hype cycle is already at its end, in other parts of the world. And do not imagine that would lower the investments or shorten the amount of time spent on the hype. The C level can never admit errors, the middle management only sees a way to promotion by following the hype. | |
| ▲ | JCM9 3 days ago | parent | prev | next [-] | | FOMO on the way up to the peak is a powerful force. Now that we’re sliding down the other side FOMO turns into “WTF did we just spend all that money on again?” | |
| ▲ | pgwhalen 3 days ago | parent | prev | next [-] | | It's hard to define what it means for a company to know something, but as a person inside a company spending on gen AI efforts, I'm pretty confident that we're not investing in it just to maintain an elevated valuation (we're a mature, privately owned company). | |
| ▲ | empath75 3 days ago | parent | prev | next [-] | | There were similar headlines in the late 80s and early 90s as IT in general was widely seen to have been a money wasting bust. Most people who try to use new technologies, especially early adopters waste a shitload of money and don't accomplish very much. | |
| ▲ | 3 days ago | parent | prev | next [-] | | [deleted] | |
| ▲ | 3 days ago | parent | prev | next [-] | | [deleted] | |
| ▲ | runarberg 3 days ago | parent | prev [-] | | My favorite conspiracy theory at the moment is that this is a way for the rich to literally burn the excess money to prevent it from getting back to the working classes in an effort to keep the exploitation machine running. Now, I don’t believe this is an actual conspiracy, but rather a culture of hating the poor. The rich will jump on any endeavor—no matter how ridiculous—as long as the poor stay poor, even if they loose money in the process. |
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| ▲ | no_wizard 3 days ago | parent | prev | next [-] |
| Gemini keeps being rather impressive though, even their iterative updates have improvements, though I'm seeing a significant slowdown in the improvements (both quantity and in how much they improve) suggestion a wall may be approaching. That said, technologies like this can also go through a rollercoaster pattern itself. Lots of innovation and improvement, followed by very little improvement but lots of research, which then explodes more improvements. I think LLMs have a better chance at following that pattern than computer vision did when that hype cycle was all the rage |
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| ▲ | chriskanan 3 days ago | parent | prev | next [-] |
| Sam Altman way oversold GPT-5's capabilities, in that it doesn't feel like a big leap in capability from a user's perspective; however, the a idea of a trainable dynamic router enabling them to run inference using a lot less compute (in aggregate) to me seems like a major win. Just not necessarily a win for the user (a win for the electric grid and making OpenAI's models more cost competitive). |
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| ▲ | belter 3 days ago | parent | prev | next [-] |
| Prepare for the crash: "Spending on AI data centers is so massive that it’s taken a bigger chunk of GDP growth than shopping" - https://fortune.com/2025/08/06/data-center-artificial-intell... |
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| ▲ | herval 3 days ago | parent [-] | | This is such a huge repeat of the early 2000s. All the bust startups spent billions in infrastructure. Everyone built their own datacenters, no matter what your business is. We'll either see a new class of "AWS of AI" companies that'll survive and be used by everyone (that's part of the play Anthropic & OpenAI are making, despite API generating a fraction of their current revenue), or Amazon + Google + Microsoft will remain as the undisputed leaders. | | |
| ▲ | chasd00 3 days ago | parent [-] | | I remember the first dot com bust, you could find Herman Miller Aerons (the stereotypical inet-startup-guy chair) super cheap as well as fairly large Cisco 6509 routers and ...i think it was Sun Fire 15ks lol. I look forward to getting some nice GPUs at a discount. idk what a person would do with a 6509 or a Sun Fire hah but they were all over craigslist iirc. |
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| ▲ | pseudosavant 3 days ago | parent | prev | next [-] |
| When OpenAI went from GPT-3.5-Turbo to GPT-4 it seemed massive, and there were no other steps in-between. And nobody else had a meaningful competitive model out yet. When GPT-5 came out, it wasn't going from GPT-4 to GPT-5. Since GPT-4 there has been: 4o, o1, o3, o3-mini, o4-mini, o4-mini-high, GPT-4.1, and GPT-4.5. And many other models (Llama, DeepSeek, Gemini, etc) from competitors have been released too. We'll probably never experience a GPT-3.5 to GPT-4 jump again. If GPT-5 was the first reasoning model, it would have seemed like that kind of jump, but it wasn't the first of anything. It is trying to unify all of the kinds of models OpenAI has offered, into one model family. |
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| ▲ | deadbabe 3 days ago | parent | prev | next [-] |
| If GPT-5 had been released last year instead, they could have probably kept the hype manageable. But they waited too long and too greedily, and the launch fell flat. And in some cases even negative as I’m seeing some bad PR about people who got too attached to their GPT-4o lovers and hate the new GPT-5. |
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| ▲ | seatac76 3 days ago | parent | prev | next [-] |
| Good point. I wonder if the Windsurf folks saw the writing on the wall and cashed out when they could. |
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| ▲ | herval 3 days ago | parent [-] | | I was a big Windsurf fan. What they did with their team became a massive cautionary tale around the current wave of startups. It's creating a distrust culture that's gonna be very hard to repair (not that it matters for the handful of newly-minted billionaires) | | |
| ▲ | seatac76 3 days ago | parent [-] | | Agreed. It was a bizarre exit and they did screw over their employees which leads to me to believe that the GenAI IDE market will be the first to implode. |
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| ▲ | mattlondon 3 days ago | parent | prev | next [-] |
| Perhaps just a trough of disillusionment for OpenAI. Anthropic and Google keep delivering. |
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| ▲ | bicepjai 3 days ago | parent | prev | next [-] |
| I would bet on Robotics in general, humanoids and other type robots |
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| ▲ | frozenport 3 days ago | parent | prev | next [-] |
| Yo what’s the next hype cycle that smart folks like us should be working on? |
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| ▲ | Terr_ 3 days ago | parent | next [-] | | The next hype-cycle might not relate to software. I'm thinking of the (smaller, shorter) phase where "nanotechnology" was getting slapped onto everything including laundry detergent. | |
| ▲ | zzzeek 3 days ago | parent | prev | next [-] | | mRNA was set to be huge but US voters apparently didnt want it. | |
| ▲ | bitmasher9 3 days ago | parent | prev | next [-] | | That’s the $100M question. Pick the answer correctly and you’ll get record breaking compensation levels. | |
| ▲ | quotemstr 3 days ago | parent | prev | next [-] | | Defense will increasingly become a national priority over the next few decades. Pax Americana is teetering. | | |
| ▲ | deepdarkforest 3 days ago | parent [-] | | That and consumer robotics. The latter will explode if (big if) RL and llm reasoning get combined into something solid. Lots and lots of smart people are working on it already of course, we are seeing great improvements but nothing really usable. i think we will finally get to a real hype stage in maybe 3-4 years |
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| ▲ | rpcope1 3 days ago | parent | prev | next [-] | | Probably defense and robotics. | |
| ▲ | 3 days ago | parent | prev | next [-] | | [deleted] | |
| ▲ | belter 3 days ago | parent | prev [-] | | The US mix of government and enterprise. You want Capital you need to be MAGA "Donald Trump and Silicon Valley's Billionaire Elegy" - https://www.wired.com/story/donald-trump-and-silicon-valleys... "Secret White House spreadsheet ranks US companies based on loyalty to Trump" - https://www.telegraph.co.uk/business/2025/08/15/secret-white... | | |
| ▲ | gmd63 3 days ago | parent [-] | | Smartest people will be working against that. You're thinking of opportunistic people with myopia. | | |
| ▲ | herval 3 days ago | parent | next [-] | | Pretty much the entire tech industry has bent the knee by now - they even gifted the new ruler with golden statues. It's not just a handful of people... | | |
| ▲ | gmd63 3 days ago | parent | next [-] | | Few people have the balls to do the right thing when the risks pass a certain limit. And yet it's most important to do the right thing at the largest scale. | |
| ▲ | zzzeek 2 days ago | parent | prev [-] | | and when Trump keels over and dies, what happens then? sort of a brittle business plan |
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| ▲ | belter 3 days ago | parent | prev [-] | | The law firms failed to do so. | | |
| ▲ | gmd63 3 days ago | parent [-] | | Some of them have certainly flagged themselves as opportunistic and myopic. |
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| ▲ | neom 3 days ago | parent | prev | next [-] |
| hahaaa! I lead a growth team for a genAI company and on Monday I said to the team "we need to start to put content together that proves our customers are having return and finding value, because we're entering the trough of disillusionment" ...I'll try not to sound desperate tho. |
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| ▲ | kylebenzle 3 days ago | parent | prev [-] |
| [dead] |