this post was submitted on 03 Oct 2025
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Fuck AI

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[–] locahosr443@lemmy.world 5 points 3 days ago

The same shell game these companies are currently playing trading stock for rapidly depreciatibg assets then borrowing heavily against those assets which each unit represents a daily liability because they operate at a loss. When the investment capital runs out all these companies operating overheads will kill them in days/weeks, and the hardware they actually own, which loses about a third of its value vs purchase price upon first install, will flood the 2nd hand market at probably 5-10% it's current value.

As usual panic in the markets will be driver of a fast crash. Nothing is certain but this is currently the most likely outcome based on past precedent of such a large majority of all investment capital being funnelled into something with such low (negative in this case) economic productivity.