AI’s broken economics: billions flow in, but where is the profit?
Generative AI may be technologically impressive, but its economics remain deeply challenged: providers spend billions on chips, data centres and energy while many services are still sold below their true cost. The article argues that AI vendors have yet to prove sustainable profitability or consistent customer ROI, despite enormous investment and hype.
It also questions whether current productivity gains justify the ongoing operating costs and persistent model limitations such as hallucinations. Ultimately, the author warns that long-term success will depend on viable business models, not just larger models and bigger investments.
Read wheresyoured.at article for more information.