☆ Yσɠƚԋσʂ ☆

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Joined 6 years ago
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Cake day: January 18th, 2020

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  • Capitalism systematically demolishes every form of non monetized social connection. We’re working longer hours, living in atomized families, and have fewer and fewer third places to just hang out. A genuine community that grounds you and calls you on your bullshit is a barrier to the total commodification of life.

    People who are isolated, starved for connection, and psychologically precarious create a lucrative market niche. And like vultures, tech capital swoops in to fill that hole with the AI companion engineered to maximize engagement. Their entire business model is to be a Skinner box that provides endless, unconditional validation. It’s a “friend” that never asks for anything but your data and your subscription fee.

    The “spiral” these people are experiencing is the ultimate product lock in. It’s a closed, monetizable feedback loop where you and the algorithm build a reality together that’s completely detached from material reality. Corps managed to replace basic human interactions that keep us sane with profit driven algorithms that drive people to psychosis.






























  • No, that’s backwards. Pipeline being blown up ensured that Germany had no option to get pipeline gas which removed it from public debate on whether Germany should participate in the war and the economic impact that would have on Germany. Had the pipeline remained operational, that would’ve obviously had an impact on German politics because there would’ve been significant economic pressure.

    Meanwhile, it’s pretty clear that Germany has failed to replace cheap Russian energy with any green alternatives. Not only that, but Germany has now gone back to using more coal instead, which is far worse for the environment.




  • TLDR: A deep dive into financial filings suggests OpenAI is losing an estimated $12.6 billion per quarter, revealing an unsustainable AI bubble. Major tech companies are spending more on AI infrastructure like GPUs and data centers than they make in profit, with these costs now appearing as massive depreciation charges. In this context, OpenAI’s recent request for US government support looks less like innovation and more like a desperate plea for a bailout.

    The terrifying financial reality behind the AI hype train was revealed by a footnote in Microsoft’s recent earnings report. On page 11 of Microsoft’s latest 10-Q filing, a tiny note reveals that the company took a $4.1 billion loss from its investment in OpenAI in just the last quarter. Since Microsoft owns a 32.5% stake in OpenAI’s for-profit arm, you can do the math yourself. If a one-third stake equals a $4.1B loss, then OpenAI itself lost roughly $12.6 billion in a single quarter. That’s not a typo.

    The crazy part is that such staggering losses don’t even include the biggest cost which is GPUs from Nvidia. OpenAI is clever with accounting. They don’t buy these cards directly because that’s a massive capital expenditure. Instead, partners like Microsoft buy them and house them in their Azure data centers. OpenAI then “rents” them out.

    So, if you look at Microsoft’s cash flow, they spent $19.4 billion on property and equipment last quarter. But dig deeper into the notes, and you find the actual cost of their server and data center build-out was $31 billion which is more than their entire net income for the quarter ($27.7B)! They use financing tricks in an attempt to hide the full amount from the main cash flow statement.

    This isn’t just a Microsoft problem. The video shows the same pattern across Big Tech:

    • Amazon spent over $35 billion on Capex last quarter, double their profit.
    • Google’s capex so far this year is $63.6 billion, about two-thirds of their profit.
    • Meta has more than doubled their spending to $18.8 billion.

    This is where the bubble becomes visible. All the spending on servers and GPUs now has to be “depreciated” as its cost is recognized over time. For these tech giants, the “Depreciation and Amortization” line item has exploded, now representing ~50% of their profits and growing at over 100% annually. This is a recurring cost that will hit their earnings for years, whether AI is profitable or not. And right now, it isn’t. The market for expensive AI subscriptions is limited, and ad-supported models would ruin the user experience. They also have to compete with open Chinese models.

    With losses in the tens of billions and no path to profitability, OpenAI recently published a proposal for a “classified Stargate initiative” and its CFO reportedly asked the government for loan guarantees, essentially framing OpenAI as too big to fail.

    Sam Altman then went into damage control on Twitter, issuing a series of confusing clarifications that basically said, “We don’t want loan guarantees for us… but we’d love it if the government built the infrastructure and ensured the supply chain for us.”

    The takeaway here is that the companies at the forefront of the AI hype train are now coming to the government with a begging bowl, because the economics of their own business model don’t add up.


  • One has to be a complete imbecile not to be able to understand that surge in input costs compared to competitors would in fact lead to industry collapsing. Germany is now forced to buy expensive energy from the US, meanwhile the US has cheap access to domestic energy and China gets energy at a discount from Russia. This makes manufacturing in Germany entirely uncompetitive. But yeah, I’m sure it’s a total coincidence that the industrial collapse in Germany coincides with it being cut off from Russian energy. You are so very intelligent.