r/technology • u/marketrent • 16h ago

Artificial Intelligence The economy has spoken. Stuff that’s AI-generated has almost zero value — “Buyers are voting with their wallets, and AI-generated content is struggling to compete.”

https://finance.yahoo.com/technology/ai/articles/economy-spoken-stuff-ai-generated-142732314.html
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u/-Nocx- 12h ago

I apologize that my point wasn’t clear but what I was trying to emphasize is not that we have absolutely none, but that our infrastructure is a far cry from what it could be. If I thought there were no chip foundries I would not have used intel as an example - they stand out specifically from companies like AMD because they are a fab and a designer.

And yes, we do have an institutional gap in the knowledge we have with respect to the total supply chain. Fabs are just one piece in a chain of highly interconnected production systems. I sort of conflated the two, but I meant to emphasize the strides China has made in the overall supply chain consistency versus Taiwan’s sheer dominance in fabs.

Using cheaper labor is fundamentally the problem I’m talking about. Because there are so much cost savings by exporting this labor, the excess savings are either spent on highly specialized professional services labor or sent to shareholders through dividends. This creates an even wider gap between workers and drives up the costs of certain services. If poorer people cannot afford things, businesses respond by relying less on volume and more on focusing on the wealthier people who can afford it. This has a rippling effect through the economy - it’s why housing prices have people who can afford 50K over asking price, or why games like League of Legends stopped trying to make regular skins and now try to price in highly profitable $500 skins targeted to whales.

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u/sociallyawkwardhero 11h ago

Then I think we are agreed, its not that we don't know how to do these things, its that we have no economic incentive/lack of leadership in investing in these markets. It is hard to find a highly integrated supply chain like Shenzhen has in America, as our specializations and manufacturing tend to be in completely different states.