Why Does Every Tech Company Think Everyone Wants AI

Truth be told, I only know one guy who’s actually excited about AI. Everyone else is largely apathetic towards it at best. But It seems like every product that comes out finds some way to shoehorn AI into it. There’s a whole think piece in itself about why no one cares about it, but the bigger question is why does every company think we want it?

Also this is my opinion so feel free to correct me

Tech companies are notoriously not profitable. Companies like Snapchat, Spotify, and Twitter (I’m not calling it X) have notably never turned a profit. So, how do they stay in business? They get tons of money (in the billions) from investors. That’s it; they don’t actually make money. Furthermore, a significant portion of these investors don’t actually have money either; they borrow it from banks. Here’s the crazy part, when the Federal Reserve raises interest rates on loans, it limits the amount of money investors are able to borrow. This leads to a severe reduction in the amount of free capital for tech companies. In 2023 alone we saw 264,220 employees get laid off across 1,193 tech companies after the Federal Reserve increased rates.

BTW, if you are a developer the state of the economy heavily affects you. Even if you work at a profitable company that doesn’t rely on money coming in from investors. When other developers get laid off from tech companies, especially the big ones, it leads to a sharp increase in the supply of developers in the industry. Which in turn decreases the value of each developer. If you’ve been on programmer TikTok you’ve probably heard nothing but how bad the job market is right now, this is why.

So let’s bring this whole thing around town. With so many tech companies feining for the limited affection of investors, all of these companies have to resort to the oldest trick in the book, buzzwords. And AI is the most powerful buzzword of them all. They don’t care what you want, you aren’t paying their bills, they’re pandering to investors.

This lack of free money is also the reason why Netflix has been so funky with their plans, Spotify raised their prices, and YouTube seems to love double ads

In other news, if any VCs would like to give a billion dollars to the next tech genius my email is contact@jadenarceneaux.com. I can do the AI, I pinky promise.