posted in Technology

sanitation@sanitation@lemmy.today

Top economist warns that the AI math doesn’t make sense: 'Profits are currently being funded by investors rather than earned from customers'

fortune.com/2026/08/10/torsten-slok-ai-profit-margins-capex-oracle/
Larry EllisonFortuneTop economist warns that the AI math doesn’t make sense: 'Profits are currently being funded by investors rather than earned from customers' | FortuneThe AI boom has turned the standard profit margin model on its head, according to Apollo Chief Economist Torsten Slok—and it’s making the industry’s growth unsustainable.
TrackinDaKraken@DarrinBrunner@lemmy.world
edited

Replying to @⁨sanitation@lemmy.today⁩

Together they’re on the hook for over a trillion dollars in lease payments, so far, that haven’t started yet. They’re counting on turning a profit before they need to start paying that back. That’s why they’re shoving it down our throats, they either make this shit work or they go down in flames.

reuters.com/…/ai-data-centre-race-builds-1-trilli…

I’m betting they go down in flames, base on the absolute shit-show “AI” has turned out to be. They keep claiming they have fixed it, or they will fix it, and then it shits the bed again in some public, spectacular way.

LifeInMultipleChoice@LifeInMultipleChoice@lemmy.world

Replying to @⁨DarrinBrunner@lemmy.world⁩

I mean that’s 4 companies though, so we’re like saying “Microsoft has something like 250 billion in leases”… But they are “worth” over 3 trillion and hold assets worth 2-3 times those leases. Don’t think it’s enough to sink those large companies, it’s just general investing at their scale now I guess.

Personally I think they are all overvalued, but unless all their shit flops quickly, they’ll be around in 10 years still.

Edited ⁨⁨Aug⁩ ⁨12⁩, ⁨2026⁩, ⁨03:19⁩⁩en