These alarms have been going off for a long time now. Everyone is already in too deep to admit that there’s a problem.
Too big to fail now, so everything is fine.
Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
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Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#12These alarms have been going off for a long time now. Everyone is already in too deep to admit that there’s a problem.
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Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#13Earlier quoted context omitted.
> Everyone is in too deep to now admit that there’s a problem I'm not sure how to square this with the dramatic improvement in LLM capabilities in the last 8-9 months. If anything, it makes the earlier investments look prescient?
No, because the LLMs will keep getting more efficient and capable. Distillation and quantization will mean firms spending trillions on giant data centres are left holding the bag. I suspect Apple ends up laughing all the way to the bank. https://github.com/microsoft/BitNet
Everyone who initially failed at this stumbled backward into victory.
Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#14Only google serves its own model - increasing its cloud revenue. The growth chart shows linear increase over time, indicating exponential growth if cloud revenue for google.
Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#15Is this why Google decided to release their article explaining how AI spend makes sense to the plebes?
Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#16Keeping in mind that Alphabet is the only one of the Mag 7 stocks that has managed to outperform the S&P 500 in 2026.
Keeping in mind that Jan 1 2026 to Jul 22 2026 is an arbitrary and meaningless time period to analyze.
Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#17Some more discussion on source: https://news.ycombinator.com/item?id=49012630
Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#18Why does it raise alarm? Pretty sure all this spending was planned.
I'm pretty sure they didn't plan to just spend cash without any return. It raises an alarm because there is no end in sight for the money burning
Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#19These alarms have been going off for a long time now. Everyone is already in too deep to admit that there’s a problem.
> Everyone is in too deep to now admit that there’s a problem I'm not sure how to square this with the dramatic improvement in LLM capabilities in the last 8-9 months. If anything, it makes the earlier investments look prescient?
For certain values of ‘dramatic improvement’. Is lots more important work being done with LLMs? Not much sign of it yet, they’ve been helpful for experts at times (e.g. vuln research or maths research) but that hardly justifies the vast sums for Google investors.
Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#20These alarms have been going off for a long time now. Everyone is already in too deep to admit that there’s a problem.
What would be the best thing to do with ones investments considering these alarms?
Say you had some money in cash rn, what should one do? Wait for a crash and buy stuff up cheap? Put it in some safe category?
This stuff is stressing me out and I do believe it's gonna come crashing down sooner or later, but I don't know enough about investments to know how to best come out unscathed.