I made this comment elsewhere, but this also severely underplays how unprofitable AI is by counting hardware suppliers’ revenue as “profit.” AI profitability means to most people what AI itself generates, and counting the spend for buildout as “profit” is doubly wrong.
Nvidia, Micron, AMD and others are selling shovels and mules in an irrational gold rush. A prospector can’t point to the money the prospector paid for shovels and a mule to claim prospecting is profitable.
Also it is not counting the AI debt the companies have been hiding off the balance. Some months ago it was reported a 420 billion gap of hidden debt just for Meta and a 3 trillion gap for the whole industry.
I made this comment elsewhere, but this also severely underplays how unprofitable AI is by counting hardware suppliers’ revenue as “profit.” AI profitability means to most people what AI itself generates, and counting the spend for buildout as “profit” is doubly wrong.
Nvidia, Micron, AMD and others are selling shovels and mules in an irrational gold rush. A prospector can’t point to the money the prospector paid for shovels and a mule to claim prospecting is profitable.
I think it is interesting that the shovel sellers profits are still not greater than the Ai losses.
Also it is not counting the AI debt the companies have been hiding off the balance. Some months ago it was reported a 420 billion gap of hidden debt just for Meta and a 3 trillion gap for the whole industry.