Companies are going broke because of AI

@thecodingsloth

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3 videos

Why it worked

The video leverages a trending, contrarian narrative about AI being a financial burden for big tech, which captures attention by challenging the 'AI is always efficient' hype.

Summary

The video discusses how major tech companies are scaling back their AI usage after realizing the high costs associated with excessive token consumption. It concludes by promoting the creator's newsletter as a source for similar industry news.

Structure

1Introduction to the AI spending problem
2Explanation of the 'tokenmaxxing' trend
3Evidence of companies cutting AI budgets
4Final warning about AI costs
5

Original caption

That AI bubble looking pretty big #ai #artificialintelligence #programming #coding

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The creator promotes their own newsletter, 'Sloth Bytes', at the end of the video as a source for more tech news.

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On-screen text

Companies are going broke because of AI Sloth News Meta and Uber had leaderboards more tokens = more productivity = more money from employees AI is pretty expensive meta killed its leaderboard microsoft apparently cancelled claude code subscriptions Uber burned through its entire 2026 AI budget in the first 4 months Walmart says token limit on employee AI tool is about cutting down on duplicative vibe coding Companies want workers to stop using so much AI Sloth Bytes

Transcript

Companies are going broke because of AI. Sloth News, yay! For the last year, big tech companies have been tokenmaxxing, basically spamming AI and flexing about it. Meta and Uber had leaderboards for who was using the most AI, and the logic was basically more tokens equals more productivity equals more money from employees. Well, that didn't work, not a surprise. Turns out AI is pretty expensive, even for these billion dollar companies. Meta killed its leaderboard, Microsoft apparently cancelled Claude Code subscriptions, Uber burned through its entire 2026 AI budget in the first four months, and apparently even Walmart ended its unlimited access to its internal AI assistant. Looks like companies are finally gonna calm down with AI or else they're gonna go bankrupt. If you want more news like this, check out my free newsletter.