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These AI companies know by now that there is no real monetization path that will recoup the over 1 trillion dollars invested by these companies. There is a circ
by spl757 26d ago
These AI companies know by now that there is no real monetization path that will recoup the over 1 trillion dollars invested by these companies. There is a circular spending spree among large corporations paying each other massive amounts of money to try to make the promise of AI real. It's not. Is it neat? Yeah. Is it reliable? No.
Where the money is not coming from are consumers. There is no consumer market for AI that stands a chance of making these companies profitable.
It's a bubble. Just like the sub-prime mortgage loan debacle of 2008. It's going to burst. These companies are large enough that the government will declare them necessary, and will give a large portion of the taxes we pay to these companies to keep them afloat.
Ah yes, the government bailout, and the government will decide who pays the real price. And that will be me, and you and the rest of us that aren't rich.
These AI companies are aware of this, or they wouldn't take the gamble. So I would have to disagree and say that the government is and will be involved in how all of this plays out.
- refurb 25d ago> Where the money is not coming from are consumers. This is 100% wrong. Look at Anthropic's quarterly revenue from AI sales ($11B), OpenAI (6.7B) and XAI ($5B). That's $23B a quarter or $100B annualized. And it's still growing. Inesting $1T when your revenue is 10% annually and growing quickly is not unusual.