This article is worth reading in full but my favourite section:
The Magnificent 7's AI Story Is Flawed, With $560 Billion of Capex between 2024 and 2025 Leading to $35 billion of Revenue, And No Profit
If they keep their promises, by the end of 2025, Meta, Amazon, Microsoft, Google and Tesla will have spent over $560 billion in capital expenditures on AI in the last two years, all to make around $35 billion.
This is egregiously fucking stupid.
Microsoft AI Revenue In 2025: $13 billion, with $10 billion from OpenAI, sold "at a heavily discounted rate that essentially only covers costs for operating the servers."
Capital Expenditures in 2025: …$80 billion
Posted by UPnwuijkbwnui
5 Comments
>I also dislike the fact that I, and others like me, are held to a remarkably different standard to those who paint themselves as “optimists,” which typically means “people that agree with what the market wishes were true.” Critics are continually badgered, prodded, poked, mocked, and jeered at for not automatically aligning with the idea that generative AI will be this massive industry, constantly having to prove themselves, as if somehow there’s something malevolent or craven about criticism, that critics “do this for clicks” or “to be a contrarian.”
Lol at the victim complex. Calling Silicon Valley bullshit is not a courageous, controversial opinion. I’d say that post is likely to do very well with the algorithms.
His tone reminds me of the main character in that Black Mirror episode with the bicycles. I can just imagine the writer holding a shard of glass to his throat as I’m reading this.
Cool. An edgy writer with little understanding of the source material giving a Luddite’s opinion on an emerging technology.
I know there are portions of this sub that are anti-AI (mostly for reason/opinions formed in 2023 and then never changed), but this is absolutely the future.
Something that is not immediately profitable doesn’t mean it has no potential (source: every massive startup turned unicorn in the history of humanity)
>As of January 2025,Microsoft’s “annualized” — meaning [best month]x12 — revenue from artificial intelligence was around $13 billion…
That’s not what “annualized” means. Trash article.
i think AI isn’t a bubble per say, but it is hard to say anyone has a moat, and so it almost feels more commodity like in its valuation, i suppose the moats are how many unique AI-application-workflow pipelines your AI company has integrated, but i can’t really imagine anyone having a advantage in that, and even if you did i’d imagine everyone else would quickly follow up and integrate their AI into whatever app is hot at the moment.
Anyone feel free to call me a moron, because I am wildly out of my area of expertise here, but isn’t it going to be hellishly difficult for a lot of these companies to really turn a profit in this area, when there is so much competition in this space, not just domestically but internationally?
It seems every month that China for example manages to create a LLM with really solid performance, but there seems to be this weird assumption that all of the big tech companies are going to make it out of this fine, plus with the great orange one at the helm, desire for US assets is declining from its ultra high peak post covid.
Dot com bubble moment?