posted in Technology
AI is forcing Big Tech to do something it’s never done: Spend more than it earns, and Wall Street hates it
fortune.com/2026/07/23/ai-big-tech-never-spend-more-than-earns-wall-street-hates-it/
FortuneAI is forcing Big Tech to do something it's never done: Spend more than it earns, and Wall Street hates it | FortuneThe Mag7 had its worst day Thursday since the tariff-driven selloff last April.
Replying to @sanitation@lemmy.today
They aren’t “forced” to do anything. They are choosing to throw money down a black hole.
Replying to @reddig33@lemmy.world
Well, I’ve learned to think of these things as wealth transfers. Question is, where’s all the money going that big tech is loosing? To power companies, or is more complex than that?
it’s going to Nvidia, Samsung, Micron, western Digital. companies that make hardware components. those are the pickaxes in this story.
Replying to @obviouspornalt@fedinsfw.app
Also maybe construction companies etc who build the data centres… They don’t care if the centre is ultimately profitable… They’re getting paid now.
Construction companies run pretty tight margins because it’s an industry with a lot of competition. I’m sure they’re not hurting, but the niche component suppliers are robbing the economy blind.