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Companies Are Realizing They’re Spending a Fortune on AI Just So Their Employees Can Generate Error-Riddled Slop, and Suddenly Cutting Back Budgets. (futurism.com)
submitted 1 week ago by to c/technology@lemmy.world
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[–] 6 points 1 week ago (7 children)

They were supposed to do their IPO and have positive cash flow already. Time is running out before investors are getting antsy and there's no more money available for scaling up.

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  • [–] -2 points 1 week ago (6 children)

    They gobbled up the easy money... now they have to work harder for more, and yeah, they may have to slow down a bit and embrace fiscal responsibility... I expect to see restructuring of debts along the way, but I'd be very surprised to see any of the major US based players implode.

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  • [–] 4 points 1 week ago* (5 children)

    Both Anthropic & OpenAI have debt repayments coming up in 2027 that:

    • cannot be restructured
    • cannot be postponed
    • they absolutely cannot pay back without even more VC money, and that faucet is being cut off right now.
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  • [–] 1 point 1 week ago* (4 children)

    Both Anthropic & OpenAI have debt repayments coming up in 2027 that:

    • cannot be restructured
    • cannot be postponed
    • they absolutely cannot pay back without even more VC money, and that faucet is being cut off right now.

    Well then. I stand corrected. The random Internet person with unprecedented access into the books & private financial dealings of two major competitors has an air-tight argument.

    I suggest we come back to this thread in a year's time and see how it is playing out.

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  • [–] 1 point 1 week ago* (2 children)

    It's actually common knowledge if you'd just fucking look.

    Also, LOL

    That's a capital furnace. Not a company that will ever turn a profit.

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  • [–] 1 point 1 week ago (1 child)

    72b of that 80b is an increase of the estimated fair value of some debt instruments, funnily enough because Anthropic's valuation has increased.

    IMHO, it serves as an incentive for creditors to keep the ship afloat, rather than pulling the plug. No guarantees, but interests are better aligned.

    Revenue-wise, it's on the right trajectory.. However, infra investments will eventually have to match the revenue they generate.

    They might also start pulling rabbits out of their hat with meaningful economic value beyond writing code and sorting emails ... solve male pattern baldness in rich white men and you're golden 🤣

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