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Can Investors Trust AI Sales Figures? Asks Wall Street Journal Opinion Piece - Slashdot

slashdot.org·slashdot.org·29 days ago
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A Wall Street Journal opinion piece warns of "a troubling trend" in AI's growth. "Rather than selling software, some AI companies are paying their partners to use it." It cites OpenAI's $1.5 billion joint venture with private-equity firms, Anthropic's $200 million contribution to a private-equity firm joint venture, and Google's $750 million subsidization of Gemini's adoption by consulting firms. "These agreements muddy the distinction between a company's sound growth trajectory and artificial financial engineering." [T]he scale and structure of the recent AI deals go beyond standard incentive mechanisms... When a seller pays customers to buy its products, it is unclear if its revenue growth reflects vibrant demand or a willingness to accept subsidies. Slashdot reader destinyland writes: This warning comes from a prominent figure in the investing community. For six years Robert Pozen was chairman of America's oldest mutual fund company, after five years at Fidelity.…

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