Tech
Dog Eating Dog Food
(Getty Images)

Big Tech’s strategy for selling AI: Dogfooding

I’m not only the AI CEO, but I’m also a client.

Meta’s Mark Zuckerberg wants you to know he’s building an AI agent to help him be CEO — and that eventually everyone should have one. Jensen Huang is broadcasting that he’d be “deeply alarmed” if Nvidia’s $500,000 engineers weren’t burning through $250,000 in AI tokens a year. Salesforce keeps talking about “digital labor” like it’s already a line item in your budget.

You can take all of this at face value. Or you can recognize a familiar move: the people selling the future are making a point of telling you they’re living in it first. It’s a little like Hair Club for Men. They’re not just pitching the product — they’re the testimonial.

But what’s interesting isn’t just the marketing; it’s how closely the messaging aligns with their business interests and the billions they’ve already poured in.

Across Big Tech, CEOs are starting to define what “good” looks like in an AI world. At Meta, that means flattening teams and pushing employees to use internal AI tools so aggressively that it shows up in performance reviews. At Nvidia, it means tying productivity to token consumption: if you’re not spending enough on AI, something’s wrong. At Salesforce, CEO Marc Benioff tells anyone who will listen that companies will soon manage fleets of “digital workers” alongside humans.

Of course, tech has a long history of “dogfooding,” or using its own products internally to make them better. But this feels different. AI is still poorly understood by most of the people being asked to buy it, and at the same time they’re being told it’s inevitable. They’re pushing internal adoption, and then pointing to that adoption as proof it works.

To be clear, this doesn’t mean they’re wrong. The uncomfortable part is that they might be early and self-interested at the same time. AI probably can make individuals more productive. Agents probably will change how work gets done. Compute probably will become a core input, like cloud spend before it.

Overall business spending on AI has been growing, and the size of those contracts has been growing as well, according to data from Ramp, a corporate card and expense management platform, suggesting that companies are finding them useful.

“ Companies are not irrational actors that are spending money with no return on investment,” Ara Kharazian, Ramp’s economist, told Sherwood News. “When they’re buying these sort of verticalized specific software solutions, it’s because they’re expanding their contracts and seats in order to capture more gains.”

But so far, the external data showing AI productivity is limited. Federal Reserve Bank of St. Louis Real-Time Population Survey data shows that while about 40% of adults use AI at work, the time saved amounts to only about 2% of total work hours. A survey of 1,000 hiring managers by Resume.org found that AI’s impact on jobs has been minimal so far, with 9% saying it had fully replaced certain roles and 45% saying it had little to no impact on staffing. In one of the first large real-world studies, researchers found that AI boosted productivity among customer service workers by about 15% on average — though gains were uneven and concentrated among less experienced employees.

In the absence of robust proof, marketing fills the gap.

This works because companies don’t just buy software — they copy norms. If the CEO of Nvidia says serious engineers should be using massive amounts of compute, that doesn’t stay contained to Nvidia. It seeps into how other companies evaluate their own teams. If Zuckerberg says the future org chart is flatter and agent-driven, that becomes less of a Meta experiment and more of a managerial benchmark.

Nvidia benefits from a world where “good” engineers use a lot of tokens. Salesforce benefits from a world where every company believes it needs AI “employees.” Meta benefits from a world where agents are everywhere — and always running up the tab. In each case, the definition of competence conveniently expands demand for the thing they sell.

There’s also a simpler explanation for the urgency: AI is really, really expensive. The biggest tech companies are collectively spending hundreds of billions of dollars on data centers, chips, and power. That kind of fixed cost only works if usage keeps climbing. So the message shifts from, “This might help,” to, “You should be doing a lot more of this already.” The faster AI becomes table stakes, the faster those investments start to look justified.

And it’s a very effective way to sell a very expensive product.

More Tech

See all Tech
tech

FT: Meta considering “tens of billions” in new capital to fund AI

Just days after Google announced a monster $85 billion upsized equity raise, the extremely profitable Meta is seeking to sell “tens of billions of dollars” in stock, according to a new report from the Financial Times.

Meta is planning on spending between $125 billion and $145 billion on AI capital expenditure this year alone.

Shares dropped more than 5% on the news.

tech

FT: Anthropic staff helping the NSA use Mythos for offensive cyberattacks

Anthropic’s Mythos AI model was deemed too dangerous to release to the public, with the company citing its ability to orchestrate novel cyberattacks.

And that’s just what the National Security Agency is doing, with the help of Anthropic staff embedded at the agency, according to a report from the Financial Times.

Only a small number of companies and US allies have been given access to the advanced model, which means America’s adversaries have not had the chance to shore up their defenses against the AI model’s new offensive capabilities.

The arrangement is especially unusual as the Pentagon has deemed Anthropic’s AI a national security supply chain risk — effectively blacklisting it for defense work — in response to the company’s refusal to allow its technology to be used for any legal application, which could include autonomous killing or mass surveillance. Anthropic is currently suing the US government to fight the determination.

Only a small number of companies and US allies have been given access to the advanced model, which means America’s adversaries have not had the chance to shore up their defenses against the AI model’s new offensive capabilities.

The arrangement is especially unusual as the Pentagon has deemed Anthropic’s AI a national security supply chain risk — effectively blacklisting it for defense work — in response to the company’s refusal to allow its technology to be used for any legal application, which could include autonomous killing or mass surveillance. Anthropic is currently suing the US government to fight the determination.

tech

Longtime Tesla bear JPMorgan upgraded Tesla and raised its price target to $475 from $145

For more than a decade, JPMorgan was Wall Streets most stubborn Tesla skeptic, anchored by auto analyst Ryan Brinkman’s strict focus on traditional car fundamentals and near-term delivery numbers.

But JPM recently handed coverage of the stock to a new analyst, Rajat Gupta, who is throwing that playbook out the window. In a note Friday, the firm upgraded Tesla to neutral from underweight and raised its price target 228% to $475 from $145. (The analyst consensus on FactSet is $403.) Instead of focusing on the company’s struggling vehicle business, the new analyst is orienting himself more toward Tesla’s idea of the future, now modeling Tesla’s physical AI and robotaxi fleets all the way out to the year 2040.

Here are the main reasons for the capitulation:

  • Looking past the car lot: Gupta argues that Tesla is at the forefront of physical AI, entering uncharted TAMs” and therefore deserves the benefit of the doubt to be valued on LT earnings potential rather than near-term speed bumps.

  • Unmatched vertical integration: Teslas control over everything from battery cells to custom silicon gives it a massive moat. JPM notes this starting point advantage is unmatched at an industrial level scale” and “still somewhat under-appreciated and misunderstood.

  • The AWS flywheel effect: Deploying Optimus robots inside its own factories should not only lower COGS for the base automotive business, but more importantly, help validate the product at an industrial scale.” Gupta called it “a classic flywheel effect, somewhat analogous to AWS and Kiva at AMZN.

For Tesla bulls who have argued for years that this is an AI company and not a carmaker, JPM’s sudden $3.9 trillion valuation model is the ultimate validation.

skynet terminator

Anthropic ponders self-improving AI

Anthropic says Claude already writes 80% of its code. A new post asks what happens when the models can improve themselves — and whether anyone could stop them.

Latest Stories

Sherwood Media, LLC and Chartr Limited produce fresh and unique perspectives on topical financial news and are fully owned subsidiaries of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Money, LLC, Robinhood U.K. Ltd, Robinhood Derivatives, LLC, Robinhood Gold, LLC, Robinhood Asset Management, LLC, Robinhood Credit, Inc., Robinhood Ventures DE, LLC and, where applicable, its managed investment vehicles.