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>assumption here is that, without AI, none of that capital would have been deployed anywhere. That intuitively doesn't sound realistic For the longest time, ca
by rsanek 1y ago
>assumption here is that, without AI, none of that capital would have been deployed anywhere. That intuitively doesn't sound realistic
For the longest time, capex at FAANG was quite low. These companies are clearly responding specifically to AI. I don't think it's realistic to expect that they would raise capex for no reason.
>a statement that's been broadly true since 2020, long before ChatGPT started the current boom
I guess it depends on your definition of "long before," but the ChatGPT release is about mid-way between now and 2020.
As for the startup vs. AI company point, have you read Stripe's whitepaper on this? They go into detail on how it seems like AI companies are indeed a different breed. https://stripe.com/en-br/lp/indexingai https://stripe.com/en-br/lp/indexingai
- trod1234 1y agoThe sunsetting of research tax breaks would explain why they threw everything into this. They also view labor as a replaceable cost, as most accountant based companies that no longer innovate act. They forget that if you don't hire people, and pay people, you don't have any sales demand and this grows worse as the overall concentration or intensity of money in few hands grows. Most AI companies are funded on extreme leverage from banks that are money-printing and this coincided with 2020 where the deposit requirements were set to 0% effectively removing fractional banking as a system.