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Friday, August 7, 2026

You Have Died Of Mathematics - Denninger

 The problem here is the same as in the other firms in the AI space.  It is not that AI does not perform some useful function; it does, but the value of that function is still up in the air despite all the hype.  The problem is the cost and the fact that the billable price per unit is being rapidly destroyed by commoditization and, on an straight analytical basis, that sort of "cost exceeds revenue, revenue-per-user will decline due to competitive pressure, and there's no believable path out of that box" problem is exactly what sunk those three companies above.  There is no getting away from mathematics in any line of business.