The tech world was shaken recently when British AI firm Builder.ai filed for bankruptcy—after it was revealed their “AI” was really 700 Indian engineers behind the curtain. It’s the Mechanical Turk all over again.
In 1770, a man named Wolfgang von Kempelen built what appeared to be a chess-playing machine, dubbed The Mechanical Turk. It beat Napoleon. It beat Benjamin Franklin. But behind the gears and winding keys? A dude in a box.
Fast forward to 2025. Same playbook, new trench coat.
AI: The Bubble, the Fraud, and the Billion-Dollar Gamble
Builder.ai wasn’t building code through machine learning. They were building illusions—with a \$455 million investment from Microsoft.
This failure throws a yellow flag on the AI track. It’s not proof of a bubble, but it’s a cautionary puff of air. Companies are skipping due diligence. Investments are being made based on buzzwords. Corporate America has already spent around \$1 trillion on AI. Some of it will bear fruit. But some will just…pop.
And the rush is real. As Jonathan noted, you can get money back. You can’t get time back. Companies are sprinting to be the first to own a user base before AI tools become the new standard across industries.
The Google Problem… and the AI Advantage
AI tools are winning because they tell you the truth—especially when the internet doesn’t. Try searching “DMCA registration” on Google. You’ll find expensive “we’ll do it for you” services first. Try it in ChatGPT? You’ll get a free, step-by-step guide with a direct link to the .gov page.
This is why people are shifting behavior. Not because AI is magic, but because it cuts through the garbage.
Microsoft, for all its bad bets (Builder.ai), has good ones too. Their open-source coding tools and other AI partnerships are delivering real value. And that’s where the bubble isn’t bursting—yet.
AI Is Increasing Wages—For Now
Believe it or not, AI isn’t stealing all the jobs. In fact, PwC reports that jobs exposed to AI are seeing wage increases—by as much as 50% in some sectors.
It’s about productivity. A teacher with AI tools becomes more efficient. A farmer with a tractor grows more than ten men with hoes. AI is doing what new tech always does: letting the skilled do more and earn more.
Top wage increases?
- Romance: +30%
- Children’s/YA: +26%
- Sci-fi/Fantasy: +21%
- Education, agriculture, retail—also surging.
Audiobooks: YouTube Is NOT the Enemy
The Audio Publishers Association reported that 35% of listeners consume audiobooks on YouTube—implying piracy.
False.
Indie authors are uploading their own audiobooks to YouTube—and sometimes earning more there than on Audible. Why? Watch hours pay well. And discoverability through Google and YouTube’s algorithm can boost long-term revenue. YouTube isn’t piracy—it’s a business model.
Bonus: If ads annoy a listener enough, they might buy the audiobook to skip them. Smart funnel.
Want an edge? Use video game footage to set ambiance for your audiobook videos—like Red Dead Redemption for Westerns. It’s visually compelling, legal, and can even boost retention. Just don’t use licensed music (sorry, Taylor Swift fans).
Spotify, Kids, and Repetition = Profit
If you write kids’ books, Spotify isn’t just an audiobook platform—it’s a music platform. Add your children’s story as a song. Why?
- Kids love repetition.
- Spotify pays per play.
- One toddler can listen 200 times a week.
You won’t get rich with one book, but if it’s well-placed and catchy, you can see a steady stream of royalties.
Shorts, Sampling, and AI-Narrated Audiobooks
Another tip: Use compelling scenes as YouTube Shorts to tease your book. Don’t chop the whole book into 72 shorts. Just pick one gripping moment—like a movie trailer scene—and let it stand alone.
And AI narration? 11Labs just released a tool that uses bracketed emotional cues to shape tone—and it’s shockingly good. Still not pro level, but better than most people. If you’re recording your own book and aren’t confident, this might beat a bad DIY job.
The Times vs. OpenAI: Surprise Settlement
Remember when The New York Times sued OpenAI? They didn’t want a court victory. They wanted a licensing deal—and they just signed one… with Amazon.
This is about training data and brand positioning. The Times wants to stay relevant by becoming the default dataset for AI models. If the AIs are trained on their content, their editorial voice remains the standard. It’s less about principles, more about market share.
Vellum 3.9: Now With Pretty Pages
For print lovers and Kickstarter dreamers, Vellum 3.9 adds:
- Full-page color bleeds
- Internal artwork support
- Colored text and pages
- Backgrounds like snow, space, or parchment
Great for deluxe editions. Not your cheap Amazon paperback. Keep the frills for your hardback fans.
BookVault also only charges color printing per page with color—a big cost saver for mixed-media books.
Audiobook Piracy Panic? Or Marketing Strategy?
Audiobook sales are back to double-digit growth. Revenue hit \$2.22 billion last year. But publishers are worried about AI narration and piracy.
Listeners willing to try AI narration dipped from 77% to 70%. It’s a number to watch.
Still, the real concern isn’t piracy—it’s discoverability. YouTube, Spotify, and Shorts can all become funnels to bring in new readers… if you know how to use them.
The Power of Presence: Be a Human, Not a Bot
As AI-generated content floods the market, readers want to know you’re real.
Pro tip from Jonathan: Screen record yourself writing your book. Not for them—just to prove you’re not an AI. No scammer is going to go through that trouble.
Authors, stop hiding. No social media, no bio, no headshot? You look like a bot. Readers want a face, a voice, a context.
As Jonathan put it: the context of who you are—your backstory, your pain, your mission—adds more value to your writing than you realize. Don’t hide behind anonymity unless you’re Daft Punk. And even then… good luck.
Tools of the Trade: Compendiums, Maps & More
Thomas launched a new Patron Toolbox, featuring:
- Character Compendium: Tracks arcs, relationships, appearances
- Location Compendium: Tracks key places, politics, and themes
- Timeline Chronicler: Orders events, even in nonlinear stories
Coming soon: Book-to-Blurbs—paste your entire manuscript and get a back cover blurb and one-liner pitch in minutes.
Jonathan suggested visual mapping tools (like Scapple or network graphs) to help authors visualize plot complexity. Think CIA corkboard meets fantasy epic.
Movie Rights & Abercrombie’s Big Score
James Cameron just optioned The Devils by Joe Abercrombie. No guarantee of a film, but the option money still pays—even if they never film a single frame.
Brandon Sanderson famously lived off Hollywood option deals long before anyone adapted his work. It’s real money if you negotiate smart.
Just don’t let Amazon buy your book unless you want it to look like Wheel of Time or Rings of Power.
Publisher Rocket: Lifetime Deal Ending
Dave Chesson’s Publisher Rocket, one of the best tools for researching Amazon keywords and categories, is ending its lifetime deal and moving to a subscription model.
It’s still available—barely. If you haven’t grabbed it yet, now’s the time. Pay once, get future updates forever.
Final Thought: Love Thy Reader
The biggest takeaway?
Don’t hate your reader.
Don’t take them for granted. Don’t write like they owe you. Write like they’re hurting. Like they’re tired. Like they’re one page away from giving up. Because they might be.
Readers don’t need slop. They need beauty. Hope. Escape. Relief. Whatever your genre, love the person on the other side of the page.
That’s how you build fans. That’s how you write something worth marketing. That’s how you create legacy.
Want more practical publishing tools, spicy industry takes, and hard-earned wisdom? Subscribe to the Author Update podcast and join us every week. Or better yet—become a patron and grab those compendiums. You’ll thank us later.
