posted in Technology

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/2026/08/10/torsten-slok-ai-profit-margins-capex-oracle/
Larry EllisonFortuneTop economist warns that the AI math doesn’t make sense: 'Profits are currently being funded by investors rather than earned from customers' | FortuneThe 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.

Replying to @⁨Abyssian@lemmy.world⁩

We can’t believe what it does not, or six agos what it does then. The shit is moving faster then literally anyone really seems to understand.

The avg person that makes fun of ai, seems to still think they have the same problems they had 2-3 years. Because the cheap free models they have access to are extremely out of date, or very limited.

The actual real deal big boy models are so far beyond what your avg even extremely technical user understands. Unless you are actively watching following and using the models you just flat out have no clue just how fast this shit is sprinting.

It’s got plenty of problems and the growth is not across every aspect of it equally. So it’s really easy to point and laugh at a particular point it’s struggling with while it skips ahead in other regards.

It’s wild. The progress is just as unsustainable as the profits are bad. As long as that progress keeps sprinting the bad profits flat out don’t matter.

IT WILL hit critical mass to replace your avg idiot long before the profit problem really hits at this rate.

The bigger problem is that even if it replaces people that profit problem doesn’t go away. So it will just hit AFTER people are replaced. And that’s a even worse outcome then replacing people.

We NEED the bubble to pop before that point and the industry recalibrates to a sustainable model.

Else we will have mass job loss promptly followed by a massive bubble popping and economy collapse AND companies flopping and job opportunity losses as places closing shop so there won’t even be jobs to back to.

It could get REALLY fucking bad.

Replying to @⁨Holytimes@sh.itjust.works⁩

IT WILL hit critical mass to replace your avg idiot long before the profit problem really hits at this rate.

Up until this point you made a lot of sense.

But this, nobody knows at the moment: which one will happen first? And that’s already the investor’s problem. RIGHT NOW.

Btw CEOs and managers might be the first “average idiots” 🤫

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