People have no idea. They’re destroying old books. Just like the last time (1), and the time before that (2), and the time before that(3), which were:
1) Nazi Germany, following debt/inflationary collapse of Weimar Republic.
2) Bolshevik Revolution, following WWI induced debt collapse of Tsars.
3) French Revolution, following debt collapse of Monarchy.
Now where are we? 40 trillion in debt. The interest is $1.1 trillion the amount added to it yearly is $2.1 trillion. The entirety of a government spending would need to be wiped out just to keep it where it is.
If you had the books that got burned, you’d know the cycle, and the fact that electing democrats isn’t gonna change a damn thing.
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.
> 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.
1) Nazi Germany, following debt/inflationary collapse of Weimar Republic.
2) Bolshevik Revolution, following WWI induced debt collapse of Tsars.
3) French Revolution, following debt collapse of Monarchy.
Now where are we? 40 trillion in debt. The interest is $1.1 trillion the amount added to it yearly is $2.1 trillion. The entirety of a government spending would need to be wiped out just to keep it where it is.
If you had the books that got burned, you’d know the cycle, and the fact that electing democrats isn’t gonna change a damn thing.