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Powell – unlike the dotcom boom, AI spending isn't a bubble

(fortune.com)
29 points madaxe_again | 2 comments | 01 Nov 25 18:40 UTC | HN request time: 0.399s | source
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wslh ◴[01 Nov 25 19:10 UTC] No.45784419[source]▶
I don't buy Powell view from his comment: you can have revenue but not profits, and also the dotcom [bubble] at the end is what makes AI possible.
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rmah ◴[01 Nov 25 19:22 UTC] No.45784514[source]▶
While I agree with your general sentiment, in fairness, Powell didn't say "revenue", he said "earnings", which is near equivalent to profits in financial reporting lingo.
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wmf ◴[01 Nov 25 19:27 UTC] No.45784552[source]▶
But the AI companies do not have profits. Even Google/MS/Meta are probably subsidizing AI with the profits from their non-AI businesses.
replies(1): >>45784563 #
1. wslh ◴[01 Nov 25 19:29 UTC] No.45784563[source]▶
I assume that in this context is basically about NVIDIA, and some other chip companies.
replies(1): >>45785605 #
2. dragonwriter ◴[01 Nov 25 21:33 UTC] No.45785605[source]▶
But NVidia's AI related profits are driven by the AI-related speculative spending in the uncertain hope of future profits by firms in the AI gold rush, they are just the leading seller of shovels.