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00:02Silicon Valley's fake-it-until-you-make-it culture is hitting a wall as AI companies struggle with business models
00:07that lose more money with each new customer, according to the Wall Street Journal.
00:11Investors are growing cautious because AI services cost more to provide than customers pay.
00:16The circular cycle of subsidized growth is starting to strain confidence.
00:21Vinny and Microsoft pledged $15 million to Anthropic this week,
00:24which agreed to buy $30 billion in Microsoft computing capacity.
00:27The usual stock bump never materialized.
00:30Many of the strong earnings initially lifted AI stocks,
00:32only for the sector to reverse sharply by the afternoon
00:35as traders question whether infrastructure spending is making it and asking deeper issues.
00:39Markets are becoming more cautious about long-term AI bets
00:42and are shifting toward companies that can deliver near-term returns,
00:46leaving stocks like Alphabet relatively unaffected.
00:48For all things money, visit Benzinga.com.
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