Nvidia Just Proved ‘AI Efficiency’ Is Fake as Layoffs Rise: ‘The Cost of Compute Is Far Beyond the Cost of Employees’

For the past couple of years, we’ve all been spoonfed the same narrative: AI is making companies leaner, faster, and more efficient. Investors were pretty keen to jump on the bandwagon, which is why valuations have skyrocketed and everybody in big tech is in the middle of a global arms race for AI infrastructure.

Unfortunately, this idea that AI is better for a company’s bottom line has also been used to rationalize mass layoffs. Everybody inherently assumes that it’s cheaper to install AI bots than it is to pay white collar workers, and so Wall Street has been rewarding the companies that are simultaneously cutting headcount and ramping up AI spending.