FatDuck3
Nov 2, 7:26 PM
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The real test of the AI boom isn't whether companies can build the infrastructure. It's whether the REVENUE & PRODUCTIVITY gains eventually become large enough to SUSTAIN the investment w/out requiring ever-increasing amounts of EXTERNAL FINANCING. The real question is whether this AI spending will create lasting economic growth, or whether it's simply giving the economy a temporary boost that disappears if companies can no longer afford to keep SPENDING
& this matters to the average American, too. If AI investment slows significantly, it will mean slower economic growth, fewer jobs, less hiring & potentially more pressure on household incomes. Ultimately, that can affect EVERYTHING from job security & wage growth to consumer confidence & the ability to keep up w/the cost of living
Nearly 20% of GDP growth is coming from companies investing in AI, data centers & related infrastructure, rather than consumer activity. WATCH OUT
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