In AI, the 41% Depends on the -59%

1vuio0pswjnm7 14 points 8 comments August 10, 2026
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Discussion Highlights (6 comments)

1vuio0pswjnm7

https://www.apollo.com/content/dam/apolloaem/pdf/daily-spark...

lostnfound8778

Currently, the snake is happily devouring its tail... question is how many vertebrae left until the head?

toomuchtodo

Related: AI's profits are 'being funded by investors rather than earned from customers - https://news.ycombinator.com/item?id=49243628 - August 2026

godshatter

Sam Altman and the rest, still riding the tiger.

tcp_handshaker

Look! The people who jump in saying how much Ed Zitron is wrong are avoiding this thread....

RigelKentaurus

I'm not sure I follow this argument. >>But that is not the case for AI. In AI, profit margins are higher the further you get from the end user, see chart below. This doesn't necessarily mean that the following is true: >>This is important because it means the AI boom's profits are currently being funded by investors rather than earned from customers. I think that AI is adding value to customers who are paying for it, but the value is going mainly to the frontier labs and hyperscalers since they, and not applications, are doing the main burden.

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