The New Reality: AI is Crushing Tech's Cash Flow

23 Mar 2026 · 1 min

Watch on YouTube

0:37

AI is forcing tech companies to spend heavily on infrastructure, ending the era of easy profits from social media and ads. Without a new business model to replace those, profit growth will stay limited for years.

Chapters

I think in the coming weeks that we're seeing, and we're publishing another report coming up here that's basically a, you know, a structural change in technology. Like, it's capital intensive now. Like, it's, it's no longer these companies running with runaway profits because they're taking advantage of this whole idea of a social platform or an ads platform. And those were sort of one-time kind of business model wrecks, so to speak. Until we find another one of those, we're probably not going to see anything like that. And it's not AI, because AI is going to change the things for everybody, and in a big way. And right now, what we're seeing is AI is just crushing people's cash flow. And I think that will continue to be the case.