The AI Investment Boom: When Will It Pay Off?

3 months ago by supersquirrel to c/technology

The second thing we talk about in the most recent report where we've been wrong was, we predicted two years ago that if the hyperscaler stocks underperformed for a significant period of time, we would expect that they would scale back on the capex. And they have underperformed because of the significant investment in capex and the negative impact on their free cash flow. But instead of cutting the capex, they've actually raised the capex. So, I think that calls into question the economics even more going forward. But the reality of it is that they've massively increased the capex despite the stocks underperforming, which is not what we expected.

...

All of that said, I think the economics are still very much in question. And if anything, I'm probably as or more skeptical on the economics today than I was before, despite how incredible the technology is.

...

Look, these are the fastest growing companies in the history of corporate America, right, on the top line. Now, again, the economics, the profits are flowing to the semiconductor companies. But from a top line perspective, these are the fastest growing companies ever.

facepalm

The bubble wobbles with billowing undulations as it grows

titty_wizard 10 points 3 months ago

path: 0 24061184, hotness: undefined, score: 10, children: 0

terranoid 2 points 3 months ago

The AI investments won't pay off unless you're the lucky fucker that invested in Amazon.com despite it being a dumbass book company compared to WebVan... Because everyone needs groceries, how can they lose?

path: 0 24060793, hotness: undefined, score: 2, children: 0

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News community around technology, social media platforms, information technology and governmental policy surrounding it.

What doesn't fit here?

The core of the story has to be technology focused.

If article mentions "AI" in a sentence and then talks about business economics that doesn't make it tech news.
Gaming is too many layers removed from technology. There are many dedicated communities that are a better fit for it.
Transporation is too many layers removed from technology. EVs while use many cool technologies have many dedicated communities that are a better fit for it.
Entertainment is too many layers removed from technology. While sometimes it can fit here, business or cultural aspects of it are a better fit for dedicated communities.
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