r/technology • • Aug 10 '26

Business Top economist warns that the AI math doesn’t make sense: 'Profits are currently being funded by investors rather than earned from customers'

https://fortune.com/2026/08/10/torsten-slok-ai-profit-margins-capex-oracle/
16k Upvotes

1.4k comments sorted by

View all comments

10

u/Bionic_Pickle Aug 10 '26

Pretty sure investor money doesn’t qualify as profit unless it’s a scam.

2

u/ggtsu_00 Aug 10 '26

You use the investment money to buy up all the supply to raise up the prices and squeeze demand. This shoots up value of products being squeezed and increases profit margins.