AI Tools Lack Business Value

Nick Huber is skeptical about AI's current business value and sustainability, particularly concerned about energy costs and overhyped promises. While he acknowledges AI's long-term potential over 20 years, he believes the current implementation is problematic for most people and businesses.

Key Points:

• Personal vs. Business Value Disconnect:

  • AI delivers value for personal use (doctor in pocket, recipes, daily tasks)
  • Business applications are failing to justify costs
  • Added 15 AI tools across portfolio companies, canceled 13 of them
  • The remaining tools are hard to justify even at current subsidized prices

• Energy Crisis Concerns:

  • Energy bills in Athens, Georgia increased 60% over three years with six rate hikes
  • 30 data centers came online in Georgia in the last four years
  • 30 more data centers are in the pipeline
  • Data centers negotiated unsustainable energy rates with local municipalities
  • Worried about average people's ability to afford basic electricity needs (dishwasher, AC, heating)

• Sustainability Issues:

  • Current AI pricing is artificially low due to subsidies throughout the chain
  • NVIDIA profits on chips, but AWS and VC-backed companies subsidize usage for land grab
  • Costs will inevitably increase as subsidies end
  • Would feel differently if nuclear power plants were widespread

• Comparison to Past Tech Promises:

  • Similar to the internet boom where only 1% of companies will survive
  • Like Elon's self-driving promises—"five years away" for twenty years
  • Improving AI will get exponentially harder and require more energy
  • Progress may plateau despite increased investment

• Impact Prediction:

  • AI will benefit the 1% while decreasing quality of life for the 99%
  • Companies may replace employees with AI, but energy costs will hurt everyone else
  • Less disposable income for regular people as energy costs rise
  • The trade-off isn't worth it for most of society

• Tesla/Self-Driving Caveat:

  • Acknowledges full self-driving is "mind blowing" when experienced
  • Wants it personally but skeptical about widespread adoption timeline
  • Believes we're still 10 years away from robo-taxis everywhere
  • Regulation now the bigger barrier than technology