Post #4143932

2026-07-27 17:56 UTC

@buffaloseven@mstdn.ca The economic theory behind bankruptcies is that they an efficient way to redeploy capital, which saves jobs and keeps assets in the economy working productively. The reality is that frontier labs are big enough and important enough that if one collapses there might be a government bailout, which is would be paid for by taxpayers ultimaitely.

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@buffaloseven@mstdn.ca 2026-07-27 18:25

@johnvoorhees@mastodon.macstories.net Not saying that wouldn’t happen, but for all the use — which for what it’s worth, nobody I know who uses Chat voluntarily would ever consider paying for it — the general sentiment around AI in a broader social context is turning negative. People needed banks and that bailout made sense to a degree. The AI industry is still largely predicated on that we will need it one day and you don’t want to be left behind. A bailout might be a much harder sell. But a bailout doesn’t solve the core cost problem, just kicks the ball down the field. How would alleviating the current debt issues resolve an untenable business model where your costs outstrip revenue potential for…a decade? Decades? Should AI just be a subsidized business? I’d be appaled to see a bailout without showing that the core business can actually be profitable.

Open ##4143931