this post was submitted on 25 Nov 2025
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[–] kokesh@lemmy.world 21 points 1 month ago (6 children)

How. How does this work? They lose astronomical amounts of money. Without a prospect to ever make enough to be in plus, not even talking about paying off all the investments. How does this system work? I never understand. Same with US economy.

[–] ExLisper@lemmy.curiana.net 20 points 1 month ago (2 children)

Simple, you invest in the company, wait for the stock price to grow and sell before it collapses. Everyone knows it will collapse eventually but for now there's still money to be made.

[–] kokesh@lemmy.world 7 points 1 month ago

I think you just explained it to me so I finally understood. Thanks!

[–] W3dd1e@lemmy.zip 4 points 1 month ago (2 children)

What if it’s not a publicly traded company like OpenAI?

[–] realitista@lemmus.org 7 points 1 month ago

Same deal but you sell to other investors.

[–] fodor@lemmy.zip 3 points 1 month ago

You always have to think like a scammer. Sure, OpenAI isn't public yet. But there are many other industries that are piggybacking on OpenAI and related services. So you can invest in them instead.

[–] demonsword@lemmy.world 15 points 1 month ago* (last edited 1 month ago)

AI companies will try to worm their way inside governments around the world, to "enhance" them. Then they'll become "essential" cost of running said governments, being "impossible" to remove without serious disruption.

[–] ChaoticEntropy@feddit.uk 5 points 1 month ago

He who controls the spice, controls the universe.

[–] fodor@lemmy.zip 3 points 1 month ago (1 children)

Well, the stock market on the whole is about gambling. Legalized gambling that fucks over small-time investors. So ... why should long-term viability matter? The gamblers want their cash, that's what they're there for, and they don't care about bankruptcy or mass economic collapse.

[–] kokesh@lemmy.world 2 points 1 month ago

Yes, but the scale of this... We're talking billions being poured into things that are not sustainable in any possible way and every investment into it will end up down the drain.

[–] theneverfox@pawb.social 3 points 1 month ago

Because companies don't do R&D anymore, they fund startups and aquire them when they're ripe

Being able to replace workers with AI is a holy Grail for capitalism, and so a ton of companies have poured their saved up "R&D funds" in order to get in early