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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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[-] eyesaremosaics@lemmy.zip 2 points 1 day ago

There's one gaping hole in the plan, the sale price where becomes profitable for the AI companies is far higher than consumers are willing to pay and unprofitable to run a business on, it's not a viable plan

this post was submitted on 11 Jul 2026

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