Key insights
- The user questions the sustainability of current AI-driven market gains, citing strong earnings but questioning future revenue streams once infrastructure build-out is complete. Concerns are raised about how companies like Google will monetize AI and whether consumer spending will shift towards AI subscriptions, impacting traditional goods purchases. The core of the inquiry is about the long-term economic model for the AI future and its impact on current valuations.
I mean, this years market gains are 90% AI-related and still going up with no signs of a slow down. And they are mostly justified because of very good earnings.
I understand that most of the earnings are big corporations moving money between each other, so there is no need for an average consumer spending on AI, or at least for now.
But, how are the AI companies gonna make money in the future when all the data centers will be built and all the memory chips will be sold?
Also, how companies like Google will monetize AI, so the current valuations will not revert back to the 2025 levels?
Will average people stop spending money on normal goods like food, housing, cars, etc. and instead start paying crazy amounts of money for AI subscriptions or similar?
Can somebody please explain how will this so called "AI future" look like?