10 August 2026 at 10:22 pm
Summary
Top economist Torsten Slok warns that the AI boom's profits are primarily funded by investors rather than customer demand, creating an unsustainable model where AI models and applications have negative operating margins while chipmakers see high profits. This disparity, coupled with increasing debt from hyperscalers, raises concerns about a potential investment bust if ROI for end customers doesn't materialize quickly enough.
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