AI is too expensive
SMRTR summary
Major tech companies have collectively spent over $800 billion on AI infrastructure, yet revenues remain a fraction of what's needed to break even. Microsoft, for example, spent roughly $100 billion on its OpenAI partnership while earning an estimated $17.9 billion in AI revenue in fiscal 2025. Meanwhile, both OpenAI and Anthropic continue burning billions annually, with no clear path to profitability, suggesting the entire AI investment boom may be financially unsustainable.
SMRTR provides this summary for quick context. The original article belongs to Hacker News.
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