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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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[-] artifex@piefed.social 11 points 2 days ago

It’s like every internet business plan from 1997!

[-] queermunist@lemmy.ml 5 points 2 days ago

If a strategy worked for one thing, it'll work for everything. 👍

this post was submitted on 11 Jul 2026

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