Powell also pushed back on the idea that all that spending is amounting to another speculative bubble. He drew a clear line between today’s surge in capital expenditure and the dot-com era, noting “these companies actually have earnings.” Those projects, he said, aren’t especially sensitive to interest rates, though, since they reflect long-term bets on higher productivity.
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Remember, the industry is spending over $30 billion a month (approximately $400 billion for 2025) and only receiving a bit more than a billion a month back in revenue.
Despite $30–40 billion in enterprise investment into GenAI, this report uncovers a surprising result in that 95% of organizations are getting zero return.
So they are firing workers, spending their reserves on data centers that wear out and deprecate fast, on a product that is failing to deliver results and the C suite thinks that this is a way to generate value…
Huh?
The economy is based on the volume/speed of transactions, this is still propping up the economy…until it doesn’t.
and then, whoopsie, all the guys who shorted the economy gain (again) and the shit hits the fan all the 1% buy up the collateral damage, and you get cold ramen in your car, which is now your home.
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https://pracap.com/an-ai-addendum/
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MIT NANDA study – The GenAI Divide: State of AI in Business 2025
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So they are firing workers, spending their reserves on data centers that wear out and deprecate fast, on a product that is failing to deliver results and the C suite thinks that this is a way to generate value… Huh?
It generates value for them and the shareholders in the short term. Unfortunately that always means we get screwed.
The economy is based on the volume/speed of transactions, this is still propping up the economy…until it doesn’t.
and then, whoopsie, all the guys who shorted the economy gain (again) and the shit hits the fan all the 1% buy up the collateral damage, and you get cold ramen in your car, which is now your home.
When you put it like that… It seems bleak.