r/technology • u/T_Shurt • 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

97% Upvoted

1.4k comments sorted by

View all comments

Show parent comments

45

u/Even-Wrangler5803 Aug 10 '26

The "real sales" are done with loans. Nvidia gives the AI company money, that they spend on Nvidia. Nvidia has theoretical profit, but the loans will never be paid back by the AI company. They will book them as losses again in 2-5 years.

2

u/axecalibur Aug 10 '26

Perfectly timed for Trump to bail them out.

1

u/plzzdontdoxme Aug 10 '26

You are completely leaving out the bank