this post was submitted on 11 Sep 2026
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Basically the same situation as with defense contractors I bet. All sorts of subcontractors take the money, turn around and either pay other subcontractors, or do as little as possible with it to be able to keep making more.
That's how you turn 300 billion of investment into 30 billion of revenue! Capitalism works SO WELL!
There is some of that. A lot of these companies actually are trying to move fast and do most of the buildout efficiently. But there is always a bottleneck like getting grid power or some piece of hardware that is in short supply. The crazy thing is that even with a bunch of construction projects stalled at some critical point, they just keep buying & stockpiling basic AI hardware (AI chips, RAM,...) and starting new datacenter construction anyway.
maybe the ai isn't the point. openai is dependent on microsoft azure credits (last i heard, anyway) and microsoft owns something like 40% of the company anyway. i think this might have been ed zitron's own observation but it seems as though the ai is an easy way for microsoft to get a bunch of cheap datacenters while hedge funds and r/wallstreetbets morons foot the bill. if that's the case, the recent IPO and associated uptick in ads might be an early indicator.
this is some real liz from truanon thinking, i mean that in a positive way. The mechanisms of high capital money flow are made purposefully opaque and very few people are watching them, but they determine a lot of the material conditions we have to deal with