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Comment by joegibbs | Hacker News Reader

Where does this bailout narrative come from? There seems to be this 100% certain idea that the AI companies will collapse and when they do the government will bail them out.

They’re not banks which would wreck the economy by collapsing and they’re nothing like General Motors which needed a bailout to save 1.2 million jobs.

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They also appear to be highly revenue generating businesses and yet supposedly they will collapse.

I’m spending quite a bit of money on subscriptions and API tokens and so are many people like me. The revenue numbers in the prospectus and what is known about AI revenue across the industry is real and significant revenue. Yes the capex is big but also exaggerated as they report 10 year numbers on contracts that have flexible cancellations etc.

I have no idea why people think AI will need a bailout. It appears to be one of the most rapidly profitable and expanding businesses we have ever seen.

They have revenue but not profit. It takes 3 bananas in expense to earn two bananas in revenue.

These companies are some ridiculous percentage of the stock market. If they collapse the stock market collapses, if the stock market collapses the economy collapses, probably the dollar collapses, if the shock is bad enough it might stop being the reserve currency which would basically nullify half of America's world power. That's the potential chain of events.

Sam and I think another OpenAI exec have dropped the idea in recent interviews.

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