AI companies are propping up AI companies

AI trained on content generated by AI is bad. AI companies supported by other AI companies is a risky situation too.

The Wall Street Journal did an interesting dive into the economics of the AI ecosystem, pointing out that massive spending by “downstream” AI companies like OpenAI and Google are propping up “upstream” AI companies like Nvidia and Intel. WSJ warned that those downstream companies will have to focus on profitability too because “AI firms won’t be able to simply goose one another’s profits forever.”