AI Economics Crisis: Why Demand Is the Critical Variable for Survival
The economics of artificial intelligence have turned sharply against companies, creating unprecedented financial pressure. With massive capital spending and circular investments, demand emerges as the critical variable separating winners from failures.
The landscape of AI economics has become increasingly brutal, with companies hemorrhaging money at unprecedented rates despite massive technological promise. What began as explosive growth in artificial intelligence capabilities has revealed fundamental economic challenges that threaten to reshape the entire industry. Unlike previous technology cycles, the current AI boom faces unique pressures from capital intensity, infrastructure demands, and market concentration that make traditional economics models increasingly irrelevant.
