No. of Recommendations: 6
A massive amount of investment is taking place by the nations largest companies in AI (frequently on a incestuous basis) with little revenue coming in from those investments.
If AI, writ large, is successful, assuming there are any consumers left after potential mass layoffs, the companies who bet large on the right horses could control much of the economy of the US or the world.
These companies have generally been cash cows, but are now taking on debt in order to continue pouring money into AI ventures.
These companies are this decades "too big to fail", and if their horse doesn't come in, my guess is they will take a hell of a beating. At some point, I'm guessing they will ask for government backup to their bonds. That would put them into a "heads I win, tails I lose" with respect to the US taxpayer.
I there money to be made? Sure, there are piles of other people's chips all over the roulette table. Is there money to be lost? Yes, if the number with their chips doesn't come up and you have to bail out the bettor. Of course, if the bettor wins, there is no assurance that the increase in performance per employed worker is not at the expense of vast number s newly unemployed (and potentially unemployable in the new AI managed economy.
That trillion bucks that OpenAI is worth - despite its problems getting paying clients - and that's only the tip of the iceberg.
Jeff
