You could argue that all the spending is wasted (doubtless some is), but insisting that the decision is being made in complete ignorance of financial concerns reeks of that “everyone’s dumb but me” energy.
The real thing to look at is whether or not the future outlook for company AI spend is heading up or down?
Are they peeking over the shoulder of each team and individual? Of course not.
It can be the case that the spend is absolutely wasteful. Numbers don’t lie.
Oh, they were involved all right. They ran their analyses and realized that the increase in Acme Corp's share price from becoming "AI-enabled" will pay for the tokens several times over. For today. They plan to be retired before tomorrow.
Most firms are not a google or a Microsoft - a firms cash balance can become a strategic weapon in the right environment. So wasting money is not a great idea. Lest we forget dividends.
Moreover if you have a budget set re. Spend on tokens - you have rationing. Therefore the firm should be trying to get the most out of token spend. If you are wasting tokens on stuff that doesn’t create a benefit financially for the firm then indeed it is not inline with proper corporate financial theory.
People who work at VC-backed firms do not get to enjoy the same degree of liquidity, not even close. There can be some outliers but that is 0.1% of all.
Can't believe simple stuff like this has to be said.
Round-tripping used to be regulated. SPVs used to be regulated. If you need a loan you used to have to go to something called a bank, now it comes from ???? who knows drug cartels, child traffickers, blackstone, russians & chinese oligarchs. Even assuming it doesn't collapse tommorow why should they make double digit returns on AI datacenters built on the backs of Americans?
> “Im convinced none of these people have any training in corporate finance. For if they did they'd realise they were wasting money.”
This isn’t meaningful criticism. This is a vacuous “those guys are so dumb”.