TechBloomberg Tech1h ago
Can the AI Boom Survive a Margin Squeeze?
TL;DRAI companies face shrinking profits as computing costs rise while token prices fall.
Why it matters: Unsustainable economics could slow AI investment and consolidate the industry toward well-capitalized players.
In this episode of Merryn Talks Money, Merryn Somerset Webb and Steve Hou, head of research at Silicon Data, delve into an emerging issue in the economics of artificial intelligence: token prices are falling while the cost of compute needed to produce them is rising. They…
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