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AI's profits are 'being funded by investors rather than earned from customers
Analysts warn that soaring AI infrastructure spending is outpacing actual business value and revenue generation.
Article URL: https://fortune.com/2026/08/10/torsten-slok-ai-profit-margins-capex-oracle/ Comments URL: https://news.ycombinator.com/item?id=49243628 Points: 35 # Comments: 13
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Generated insight by OnAirToday AI
The current AI boom relies heavily on massive venture capital subsidies rather than sustainable, customer-driven revenue models. This disconnect between extreme capital expenditure and actual operational profitability suggests an inevitable reckoning for tech giants and startups alike.
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