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Chris Remington ( remington@beehaw.org ) MA to Technology · 2 months ago

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

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  • cross-posted to:
  • technology@lemmy.zip
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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

Chris Remington ( remington@beehaw.org ) MA to Technology · 2 months ago
message-square
61
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fedilink
  • cross-posted to:
  • technology@lemmy.zip
Top economist warns that the AI math doesn’t make sense: 'Profits are currently being funded by investors rather than earned from customers' | Fortune
fortune.com
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The 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.
  • Angryhumanoid ( Angryhumanoid@fedinsfw.app ) 
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    2 months ago

    If only there was a name for that kind of money making scheme…

    • eurodyne ( eurodyne@piefed.world ) 
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      2 months ago

      Is it… Reaganomics?

      Or, more specifically, Ponzi scheme?

      There’s probably a more contemporaneous name… Something involving Elon Musk I’m sure

      • Angryhumanoid ( Angryhumanoid@fedinsfw.app ) 
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        2 months ago

        “Musking it up”?

        • eurodyne ( eurodyne@piefed.world ) 
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          2 months ago

          Hmmm… I think it needs to be something with more ‘bite’. “Musking it up” sounds like a 90s sitcom dad-move. Like something Tim Allen might have tried on Home Improvement.

          “Livin’ On the Eggs!”

          “Just can’t help myself from breeeeding!”

          Ok, fucking yikes— no, that was somehow even more 90s, and incredibly terrifying. Apologies to anyone who gets the reference. and to literally every member of Aerosmith.

          • WalleyeWarrior ( WalleyeWarrior@midwest.social ) 
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            2 months ago

            No apologies for Steven Tyler. He paid a family to make him the legal guardian of a 16 year old so that he could take her cross country and live with her.

            • eurodyne ( eurodyne@piefed.world ) 
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              2 months ago

              Yeah, I remember that too because I was a teenager when that was in the newspapers, and people were like “whatever”

              So gross

          • calliope ( calliope@retrolemmy.com ) 
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            2 months ago

            I actually came back to ask “is that an Aerosmith ‘Livin On the Edge’ reference in the wild?!”

            I loved it.

            • eurodyne ( eurodyne@piefed.world ) 
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              2 months ago

              I just can’t help myself from faaaaaallin’

          • t3rmit3 ( t3rmit3@beehaw.org ) 
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            2 months ago

            I thought it was a Weird Al reference…

            • eurodyne ( eurodyne@piefed.world ) 
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              2 months ago

              Lol, sorry Al, I got there first!

              Edit: but I love that dude so much, he can fucking have it

              Edit 2 [Nov 5, 2056]: As the legal representative of [NAME REDACTED / username: eurodyne] our previous comments are hereby rescinded.

      • 4am ( 4am@lemmy.zip ) 
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        2 months ago

        It’s exactly a Ponzi scheme, with the one difference being that there is no product with a true Ponzi scheme, but this one has a product. It’s just a worthless mechanical Turk designed to hornswaggle the rubes.

        It’s an Altman scheme.

        • eurodyne ( eurodyne@piefed.world ) 
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          2 months ago

          I know. It was a joke.

          But, at least for now, ai doesn’t really do anything, either, at least not anything particularly meaningful. It’s a McGuffin for billionaires to slush money around and profit from others investing in bunk stock. They’re making trillions in a gigantic pump and dump scheme, and right before the bubble bursts, they’re gonna cash out and fuck off leaving everyone else to get screwed

      • pgo_lemmy ( pgo_lemmy@feddit.it ) 
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        2 months ago

        Reaganomics recalled something from some forgotten box.

        Elon-gate?

        • eurodyne ( eurodyne@piefed.world ) 
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          2 months ago

          Elon-gate recalled a meme from some forgotten box

          A 1996 vintage, I believe? South African. A rosy nose, full-bodied, with a turd finish.

          • t3rmit3 ( t3rmit3@beehaw.org ) 
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            2 months ago

            Now that’s crispy

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