• mapto
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    6 months ago

    "The current AI investment cycle differs from previous technology bubbles. Unlike dot-com era startups that burned through venture capital with no path to profitability, the largest AI investors—Microsoft, Google, Meta, and Amazon—generate hundreds of billions of dollars in annual profits from their core businesses.

    Microsoft alone plans to spend $80 billion on AI data centers this fiscal year. These companies can potentially sustain losses from AI development for years without facing the cash crises that typically trigger bubble collapses." https://mastodon.social/@arstechnica/115069034230061095