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Without Subsidies, AI Is Unaffordable (charleshughsmith.substack.com)

submitted 2 days ago by technocrit@lemmy.dbzer0.com to c/fuck_ai@lemmy.world

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AI is based on massively subsidizing users’ costs. Once those subsidies end, what’s left are costs, not profits. Play that any way you like, but massive subsidies are not sustainable, though they generate a temporary illusion of viability that can be exploited by those selling a fantasy of future profitability to credulous investors and enterprises.

Left unsaid is a lot of money is being gambled on the illusion that subsidies are sustainable. They’re not. Enterprises don’t have profits, they have costs.

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[-] TORFdot0@lemmy.world 29 points 2 days ago

As Cory Doctorow put recently, selling $40 for $1 is a great way to generate demand but not a great way to stay in business.

Once AI stops getting subsidized, the house of cards topples immediately

this post was submitted on 11 Jul 2026

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