AI Psychosis

This morning I fell into a rabbit hole reading about companies quietly walking back their AI bets. Microsoft is canceling most of its Claude Code licenses six months after handing them out. Uber burned through its entire 2026 AI coding budget in four months. An Nvidia exec admitted that for his team, the cost of compute is now higher than the cost of the engineers. And yet, scroll for thirty seconds and you'll find someone certain that AGI basically landed last Tuesday. That gap, between the receipts and the belief, is the thing I actually want to talk about. A few months ago I wrote a blog post about whether AI will take jobs, and the whole point of it was to tell everyone to relax. I still believe that. The harder question is what AI has quietly been doing to the people who use it all day, every day, myself very much included. People are getting genuinely, measurably delusional, and most of them can't feel it happening. The machine everyone believes in The loudest fans of AI tend…