As I’ve heard it, the AI industry is borrowing against their mountain of computers to get their next round of money. The problem is, computers depreciate fast - their hardware is on like a two year replacement cycle. The solution - pinch the supply to make the value of your depreciating assets go up. Now you have higher valued collateral to borrow against, so you can buy more of the supply, pinching more, which makes your collateral more valuable again, ad infinitum.
Congratulations! You have now won at Capitalism. Now stare at the Game Over screen forever.
As I’ve heard it, the AI industry is borrowing against their mountain of computers to get their next round of money. The problem is, computers depreciate fast - their hardware is on like a two year replacement cycle. The solution - pinch the supply to make the value of your depreciating assets go up. Now you have higher valued collateral to borrow against, so you can buy more of the supply, pinching more, which makes your collateral more valuable again, ad infinitum.
Congratulations! You have now won at Capitalism. Now stare at the Game Over screen forever.