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Nvidia Exec: AI Currently More Expensive Than Human Workers
Nvidia’s vice president of applied deep learning, Bryan Catanzaro, recently stated that for his team, “the cost of compute is far beyond the costs of the employees,” highlighting that AI is currently more expensive than human workers. This challenges the narrative that widespread tech layoffs (including Meta’s planned cut of \~8,000 jobs and Microsoft’s voluntary buyouts) signal an imminent replacement of humans by AI. An MIT study from 2024 supports this, finding that AI automation is economically viable in only 23% of roles where vision is central, and cheaper for humans in the remaining 77%. Despite heavy AI investment—Big Tech has announced $740 billion in capital expenditures so far this year, a 69% increase from 2025—there is still no clear evidence of broad productivity gains or job displacement from AI. AI spending is driving up costs, with some executives like Uber’s CTO saying their budgets have already been “blown away.” Experts describe the situation as a short-term mismatch: high hardware, energy, and inference costs make AI less efficient than humans right now, though future improvements in infrastructure, model efficiency, and pricing models could tip the balance toward greater economic viability in the coming years.
Australia's New Law: Big Tech to Pay for News or Face 2.25% Tax
The more deals platforms make with media outlets, the less they pay. If enough agreements go through, that effective rate drops to 1.5%, which could generate between A$200 million and A$250 million back into Australian journalism.
AI's Personal Revolution: Threat to Big Tech's Dominance?
There are many people feeling anxious—rightly so—about their own future because of the impressive advances in AI. If we stop to think about it, five years ago this wasn’t a concern for almost anyone, whether individuals or companies. It was something that appeared “out of nowhere” and caused such a massive disruption that giants like Google and Microsoft had to rethink their strategies. OpenAI has existed since 2015, quietly working in an unusual direction compared to the rest of the industry, and when ChatGPT took off globally, the revolution gained real momentum. Today, there’s a lot of talk about the subsidized costs of AI and how this will be unsustainable in the long run—that the bubble will burst, and so on. And that’s where I disagree: to me, there are smaller projects happening around the world, focusing on things that the big players can’t currently afford to prioritize. One example would be optimizing models or personal hardware in such a way that you could run them on your own computer without needing million-dollar equipment. If a large company were to achieve this, I’d bet on Apple or Nvidia—that is, hardware-focused companies. Apple, in particular, seems very suspicious to me, since it hasn’t made major moves during the AI hype and has remained quite quiet on the subject. Just remember that computers existed long before they became PCs (personal computers). Many people didn’t believe that an average person would ever need a computer at home. And the revolution came when computers became personal and accessible products. To me, something similar could happen at some point—and it could cause significant losses for companies that are currently investing massive amounts of money in expanding data centers to process AI.