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Doctorow: AI moratorium serves bosses hiding unprofitable economics

Doctorow publishes analysis of AI industry's financial unsustainability

1 Sep 16 4:04 AM · 11d ago · 2 posts · 1 source · development 1 of 3

Cory Doctorow published a lengthy analysis arguing that the hyperscaler model of AI—with its massive expenditures and negative unit economics—cannot be profitable, and that companies are using non-GAAP accounting methods to falsely claim profitability. He drew parallels to the WeWork collapse as an example of similar financial manipulation.

“companies lose money with every new customer and every new use, and they lose more money with each generation of their products”

Cory Doctorow

Cory DoctorowCory Doctorow Tech writer and authorOpenAI AI companyAnthropic AI company

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1–3Doctorow publishes analysis of AI…
Sep 17Sep 18Sep 19Sep 20Sep 21Sep 22Sep 23Sep 24Sep 25yesterdaynow · 10:23 PM ET

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