This is a ridiculous stat in a ridiculous story:
"The marginal cost of running an agent, had collapsed to, essentially, the cost of electricity."
The marginal cost of a coding agent is not even remotely close to "the cost of electricity."
These agents are absurdly expensive to use and run. Why do you think AI labs are banning people from having multiple $200 subscriptions? Because those subscriptions are heavily, heavily discounted to drive demand. Why did labs stop folks from using their subscription costs in OpenClaw?
The OpenClaw guy had five max subs and was losing 20k a month building and running his amazing project (because he was retired and had the money to set in fire) before AI labs banned this practice of having multiple subs.
In case you just missed it: Because these agents are expensive as hell to run.
The cost of running coding agents daily on eight hour shifts is thousands of dollars a month at API pricing and that is subsidized too.
My team regularly burns anywhere from 4K-8K a month across three people using the latest and greatest for an AI driven building workflow.
That's not even agents running 24x7 "making money while you sleep" which is utter and total nonsense.
This is one of the most spectacularly unprofitable businesses in history so far.
People talking about the end of all work because this stuff runs for "pennies" cannot do even the most basic math.
New NVIDIA chips don't even break even for data centers for like 24-36 months and they are basically obsolete by then. That doesn't count power and cooling and people to run it all.
Imagine if your car was basically worth zero after three years?
I'm so sick of these idiotic Population Bomb level stories about the end of all work and running agents for pennies.
It's a mass delusion for people who can't be bothered to bust out a calculator on their phone for five seconds.
$50B of Indian IT services market value was eroded in the last 30 days. The Citrini article predicts it will collapse even more.
Niftya IT index: -15%
Wipro: -25%
Infosys: -25%
TCS: -17%
Cognizant: -24%
HCL: -17%
Accenture: -25%
Capgemini: -30%
LTI Mindtree: -25%
TechMahindra: -18%
Mphasis: -20%
Palantir claims it can compress complex SAP ERP migrations (ECC to S4) from years to 2 weeks. GCCs (companies owning their own offshore IT departments in India) with Claude Cowork are far more ecomical than multi year IT services contracts. I do think the 18% rupee collapse is exaggerated though.
The IT services business model absolutely breaks at the current capability of AI tooling, and its ~10% of Indian GDP.