RS83 on Nostr: THE ECONOMICS BEHIND THE AI BOOM ARE BECOMING VERY DANGEROUS. The cost of using AI is ...
THE ECONOMICS BEHIND THE AI BOOM ARE BECOMING VERY DANGEROUS.
The cost of using AI is falling sharply, but the cost of running the infrastructure behind it remains extremely high.
And this could become a serious problem.
According to data compiled by Citadel Securities, AI token prices have continued falling since June, while H100 GPU rental prices have remained around $2.70 per hour.
This means AI companies are charging less for their services, but the computing power they need is still expensive.
And despite this, companies are spending hundreds of billions building more data centers and buying more GPUs.
A lot of this expansion is being funded through debt and long-term contracts.
The problem is simple.
If AI prices keep falling while infrastructure costs stay high, companies could end up spending far more than they can earn back.
And with even more computing capacity coming online, the pressure on prices and profits could get worse.
The biggest risk is that the AI industry keeps spending at record levels while the returns on that spending continue to fall.
If that happens, the financial damage could be much bigger than investors currently expect.
Published at
2026-10-13 09:29:54 UTCEvent JSON
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"content": "THE ECONOMICS BEHIND THE AI BOOM ARE BECOMING VERY DANGEROUS.\n\nThe cost of using AI is falling sharply, but the cost of running the infrastructure behind it remains extremely high.\n\nAnd this could become a serious problem.\n\nAccording to data compiled by Citadel Securities, AI token prices have continued falling since June, while H100 GPU rental prices have remained around $2.70 per hour.\n\nThis means AI companies are charging less for their services, but the computing power they need is still expensive.\n\nAnd despite this, companies are spending hundreds of billions building more data centers and buying more GPUs.\n\nA lot of this expansion is being funded through debt and long-term contracts.\n\nThe problem is simple.\n\nIf AI prices keep falling while infrastructure costs stay high, companies could end up spending far more than they can earn back.\n\nAnd with even more computing capacity coming online, the pressure on prices and profits could get worse.\n\nThe biggest risk is that the AI industry keeps spending at record levels while the returns on that spending continue to fall.\n\nIf that happens, the financial damage could be much bigger than investors currently expect. https://blossom.primal.net/fff10a8b352ab019468a0b129ebd8b2db887bb5ca09dc0b288b79d3b234fcdbd.jpg ",
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