Part 6/13:
This dynamic illustrates a broader trend: the government’s backing and massive investments may not be sustainable or beneficial in the long run. The industry’s reliance on billions of dollars pouring into data centers and AI projects—often backed by questionable financing—raises serious questions about economic and environmental stability.
Financial Strains and Technological Overreach
The financial aspect is staggering. OpenAI, a leader in AI development, is described as a "loss-making machine" with no clear path to profitability by 2030. Its need for an additional $200 billion in funding, despite already spending trillions on compute commitments, highlights the bubble-like nature of the AI economy.