The tech industry has a long history of employing innovative accounting tricks to portray struggling companies as highly profitable, with AI being the latest vehicle for these manipulations. Masayoshi Son, founder of Softbank, is noted for propping up startups, like Wework, by inflating their valuations with minimal investment. Companies, particularly among Big Tech, perpetuate a narrative of perpetual growth to maintain high market valuations, even as their actual profitability wanes. For instance, Google intentionally complicates its search processes to increase ad exposure, illustrating the lengths companies go to appear growth-oriented. AI’s integration into products, despite user aversion, is driven by pressure to sustain the facade of innovation and future growth prospects. However, the harsh reality is that many AI firms face unsustainable business models, projecting substantial losses against meager income, leading to skepticism about the industry’s stability and future.
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