US AI industry's economic model is cracking: subscriptions below compute cost, data centers stalled
Minimum_Name9115 · reddit · 2026-08-22
The author argues the AI business model built by Wall Street and Silicon Valley is falling apart: user subscription fees fall far below companies' compute costs. New data center construction faces severe blowback almost everywhere, and power grid and capital budget constraints have delayed dozens of projects. The author concludes the US AI industry is too far behind and China now owns it.
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