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‘A feedback loop with no brake’: how an AI doomsday report shook US markets
(www.theguardian.com)
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this post was submitted on 25 Feb 2026
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The difference was that Amazon knew how to make a profit, but was reinvesting into infrastructure plays and bigger fish.
If they had to, they could have been a modestly profitable bookshop in 2002. AWS and monster logistics might not have developed to put them in the 13-digit club though.
Does any AI-centric play have that fundamental fallback? The services that seem to be most effective at direct monetization, the coding tools, are typically running at huge losses. If they raised costs to cover, precious few firms will pay basically the salary of a senior dev for an emulation of an enthusiastic junior dev with an affinity for footguns.
The less enterprise-focused products-- parasocial toys, image and video gen, will likely try to dip into consumer subs and advertising, but can that generate the cash volumes these platforms demand?
If people would always demand answers for those questions, we wouldn't have speculative bubbles. For now, everybody seems to still believe the "it's the worst it'll ever be right now" and the "just more scaling bro" answers.