Don't forget, though, that there's another cashflow that they're banking on: total surveillance.

AI can't do a lot of things, but the thing it's most suited for is creating a society run like a prison to try and keep the discontented masses in check.

Modern companies are only profitable in late stage capitalism if they fall into one of they two categories: scams or gambling.

This right here is how all of this will come crashing down

No, this is pretty normal, and more importantly, doesn't actually cost the company cash. They gave lenders bonds that can be converted to stock, so this loss on their books is pure paper loss, the same way wealth in owning stock in this money losing company is pure paper wealth.

These numbers are just illustration for simplicity, but imagine a company borrowing $20 billion and telling the lender that you'll either pay back the $20 billion plus interest, or they can opt to convert it into stock worth 10% of the company. When the company is worth $100 billion, the bondholders won't convert to stock. But if the value of the company shoots up on paper to where that same stock would be worth $100 billion, the lenders would rather take the stock than the cash repayment. And because it's worth $80 billion more, the company will have to record that on the books as replacing $20 billion in bonds for $100 billion in stock, and an $80 billion loss compared to their last statement.

But look at the underlying financial cash flow. When that happens, the company actually takes $20 billion in debt off their books. They don't have to repay that loan anymore. So it improves their cash flow position at exactly the same time that they're booking a loss.

The whole thing will come crashing down for totally different reasons, relating to operational cash flow, not the actual accounting shenanigans where one kind of paper number gets converted to another kind of paper number.

I dunno, isn't this the same scheme that the ride share companies and food delivery services?

also before court cases for defamation. Two cases in Germany hold Google executives responsible for false claims (by the Google AI) of sexual crime claims against an innocent man.

or counting the $1.5 trillion in debt the big AI players are hiding in subsidiaries

"The court finds Anthropic guilty and orders them to relinquish the whole of their company to the Group Representing All Artists".

Artists : "Wait -".

Dario Amodei : "Fuck yes! Good luck paying back those 80 billions, losers!"

The issue is they are too expensive, it's not really a limitation of the technology, well it might be, but that's not the issue here. They are paying Nvidia Billions for their entire 2026/27 GPU runs and they can't get the customers to cover that. It's like $200 pm for their max plan. It's almost cheeper to hire a human in India.

I hope it pops

They have.

1. Wait for excited CEOs to fire all their staff.

2. Crank up the prices.

Yes. If you follow the money, investors in OpenAI are the usual suspects, a Kushner in there (admittedly the "best" kushner) and the early investors were guaranteed returns of up to 18% (bank CD currently around 5.3%) which stemmed from a $500B injection from the US government. Not only will it be a rug pull, but a government built one. Truly appaling, we let the fox in the henhouse.

Cant have Healthcare for our people, but can pump and dump the world economy.

So far

Excellent use of the meme template.

The RAM cartel is figuring out a new excuse for a price hike before allowing it.

So much of their revenue is government contracts. Especially with the Pentagon.

Really can't be overstated how they've wormed themselves into the Military Industrial Complex.

It's always us normies that end up footing the bill and feeling the pain (sometimes literally to the point of dying).

Every fucking time.