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by moron4hire 213 days ago
"Now they have AI to protect," you're ultimately talking about corporate leadership being susceptible to the sunk cost fallacy here. But AI investment is a particularly easy sunk cost to get out of compared to real estate. Real estate has lease obligations and moving costs; it will cost you a lot more in the short term to get rid of your real estate. AI you could just stop using and immediately see cost reduction.
2 comments

There are trillions invested innit at this point.

50 year lease write off would be peanuts compared to what's been invested with the expectation of payouts

The entire American tech industry will implode in a bubble pop if AI doesn't pan out.

I argue that real estate was a smaller problem than this AI bubble behemoth they've created. And now everyones retirement is wrapped up in it.