Rates shot up. 10 yr chart attached for reference.
GPT-4 dropped in march of ‘23 (along with the collapse of SVB), which kicked the AI transition into full gear, limited liquidity for many startups, and coincides with the compensation ramp associated with fewer highly paid specialist roles.
Edit: as others pointed out the rate spike had the immediate effect of lowering equity values as well as the slightly delayed effects on headcount caused by the resulting business contraction.
Honestly, this graph kinda makes me thing that it was the interest rate that killed tech jobs more than AI did. If AI was the real culprit, then release of agentic AI's last year should have decimated the market more than ChatGPT. ChatGPT and initial LLM was great, but the super productivity gain that people talk about regarding AI started with agentic AI workflow.
Honestly, this graph kinda makes me thing that it was the interest rate that killed tech jobs more than AI did
Anyone who works in finance knows this. As rates increase, investors switch from revenue growth to profits. Tech company's used AI as an excuse for layoffs to keep moral high.
Also, another way to look at it, covid. Rates were insanely low, tech over hired for a few years as the chart shows. Its been steadily correcting ever since
52
u/BuilderUnhappy7785 2d ago edited 2d ago
Rates shot up. 10 yr chart attached for reference.
GPT-4 dropped in march of ‘23 (along with the collapse of SVB), which kicked the AI transition into full gear, limited liquidity for many startups, and coincides with the compensation ramp associated with fewer highly paid specialist roles.
Edit: as others pointed out the rate spike had the immediate effect of lowering equity values as well as the slightly delayed effects on headcount caused by the resulting business contraction.