5.28.2026
artificial intelligenceeconomicsstartups

The article discusses the high costs of artificial intelligence (AI), arguing that it is not economically viable for most entities except construction firms and certain hardware companies. It highlights that substantial investment into AI by hyperscalers, totalling over $800 billion in the last three years, is problematic as these companies would need to generate trillions in AI-specific revenue just to break even. The author notes most AI startups are losing money and doubts over the profitability of major companies' AI revenues persist.

AI Is Too Expensive

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