I remember the same argument being used before the 2008 crash.
Point is that all of this companies need to start making real profits and pretty damn big ones, otherwise all of this will collapse. Problem is that unless Altman has some super-intelligent super-AI hidden in his closet, it is very unlikely that it will.
And whose gonna take the bill when it falls? Let me guess… Where have I seen this before…?
> Point is that all of this companies need to start making real profits and pretty damn big ones
MS, Meta, Google, Apple, Nvidia make enormous profits. I think part of this AI push we're seeing is that all of these companies have so much money they don't know how to spend it all. Meta is a great case where they bounced from blowing excess cash on the metaverse and now to AI.
That's fine, but that's a separate conversation. Maybe this is a bubble, maybe it isn't.
My point is that the way it's all being financed is just regular financing. This article is trying to present the way it's being funded as novel, as "complex and circular", when it's not. This is how funding and investment works 365 days a year in all sectors. Nothing about the funding arrangements is a bubble indicator.
So this is a strange article from the NYT, because it's trying to present normal everyday financing deals as uniquely "complex and circular".
I don’t know financial world well enough to say whether that’s here nor there, but can you give me examples from other companies or sectors where a company X funds the company Y with tens to hundreds of billions that the company Y uses to buy a service from the company X.
Furthermore, yes it might be business as usual but so is fraud and god knows what else in this particular political era. In order to strengthen your argument you have to not only show that the phenomenon is not only common, but good for the overall economy.
Point is that all of this companies need to start making real profits and pretty damn big ones, otherwise all of this will collapse. Problem is that unless Altman has some super-intelligent super-AI hidden in his closet, it is very unlikely that it will.
And whose gonna take the bill when it falls? Let me guess… Where have I seen this before…?