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Why AI Has No ROI with Paul Kedrosky

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Why AI Has No ROI with Paul Kedrosky

Better Offline

19 HOURS AGO
Better Offline

Better Offline

19 HOURS AGO
OverviewShownoteHighlightsTranscriptChaptersPins

Shownote

In this week’s Better Offline, Ed Zitron is joined by economist Paul Kedrosky to talk about why nobody can find the ROI of AI, why there won’t be a Dot Com Bubble-style recovery for AI data centers, and how Google’s $80bn equity sale shows we’re at the top...

Highlights

In this episode, Ed Zitron and economist Paul Kedrosky dissect the growing skepticism around AI's financial returns, arguing that the industry is built on shaky foundations. They explore why the promised profits from AI may never materialize, comparing the current investment frenzy to historical economic bubbles.
00:00
AI's return on investment is being questioned.
05:48
AI token pricing was initially subsidized, masking true costs.
14:19
Token prices are falling 70-90% year-over-year
20:14
AI GPUs are impossible to repurpose after a crash.
23:13
AI is like building railroads to nowhere
28:27
AI productivity tools flood markets with slop, reducing margins.

Chapters

Is AI Actually Making Money? The Growing Skepticism About ROI
00:00
The Hidden Cost of AI: When Free Tokens Turn Into a Bill
05:48
Inflated Numbers and Falling Prices: The Real State of AI Revenue
11:17
The Commoditization Trap: Why Smaller Models Are a Big Problem
17:06
Faith vs. Reality: Why AI Won't Be the Next Railroad Boom
23:13
The Slop Factory: How AI Tools Are Flooding Markets with Low-Quality Output
28:27

Transcript

Paul Kedrosky: This is an iHeart Podcast. Guaranteed human. Ed Zitron: That feeling when you check your bank account and your paychecks days away. And, of course, your calendar's all. Good news! With Chase Secure Banking, your direct deposit hits your ban...