[er2d]

Im convinced none of these people have any training in corporate finance. For if they did they'd realise they were wasting money.

I guess you gotta look busy. But the stick will come when the shareholders look at the income statement and ask... So I see an increase in operating expenses. Let me go calculate the ROIC. Hm its lower, what to do? Oh I know, lets fire the people who caused this (it wont be the C-Suite or management who takes the fall) lmao.

[dpark]

Do you really think companies have started spending millions on tokens and no one from finance has been involved?

You could argue that all the spending is wasted (doubtless some is), but insisting that the decision is being made in complete ignorance of financial concerns reeks of that “everyone’s dumb but me” energy.

[hattmall]

There is a difference to just noticing and attributing it to and recognizing negative financial outcomes. Right now for most companies they are still adjusting to declining inflation. Their bottom lines are doing quite well because consumer price inflation is much stickier than supply inflation. We are coming off of one of the quickest and largest supply lead inflationary cycles. It may not be immediately apparent for many companies that new expenditures are a drag on profitability.

The real thing to look at is whether or not the future outlook for company AI spend is heading up or down?

[wjeje]

What a finance team allocates on spend has nothing to do with what the tokens actually get used for.

Are they peeking over the shoulder of each team and individual? Of course not.

It can be the case that the spend is absolutely wasteful. Numbers don’t lie.

[temp8830]

> Do you really think companies have started spending millions on tokens and no one from finance has been involved?

Oh, they were involved all right. They ran their analyses and realized that the increase in Acme Corp's share price from becoming "AI-enabled" will pay for the tokens several times over. For today. They plan to be retired before tomorrow.

[wjeje]

That magic trick only works for publicly traded stocks.

Most firms are not a google or a Microsoft - a firms cash balance can become a strategic weapon in the right environment. So wasting money is not a great idea. Lest we forget dividends.

Moreover if you have a budget set re. Spend on tokens - you have rationing. Therefore the firm should be trying to get the most out of token spend. If you are wasting tokens on stuff that doesn’t create a benefit financially for the firm then indeed it is not inline with proper corporate financial theory.

[strange_quark]

No, it works for any VC-backed companies. Something like 60% of VC funding last year went to AI companies. VCs aren't going to give you a money unless you're building an agentic AI-native agent platform for agents.

[wjeje]

No Employees of publicly traded firms benefit from short-term gains in the stock price, assuming the stock price jump holds throughout the period of grant/vesting.

People who work at VC-backed firms do not get to enjoy the same degree of liquidity, not even close. There can be some outliers but that is 0.1% of all.

Can't believe simple stuff like this has to be said.

[strange_quark]

CFOs or VPs absolutely benefit by hyping their company up to private investors by allowing tokenmaxxing to go on unchecked. Tender offers, acquisitions, and aquihires all exist. Or just good old fashioned resume padding by saying you "enabled AI transformation" or whatever helps you land a big payday at some other company.

[dpark]

Sounds like they did train in corporate finance.

[wjeje]

Sounds like you haven’t had training in corporate finance.

[casey2]

More that there is a poor incentive structure. Just like how PE can make money by leveraged buyouts and running businesses into the ground. Many of the financial instruments that make both that and the current AI bubble possible were legal then made illegal within the lifetimes of the last 16 presidents.

Round-tripping used to be regulated. SPVs used to be regulated. If you need a loan you used to have to go to something called a bank, now it comes from ???? who knows drug cartels, child traffickers, blackstone, russians & chinese oligarchs. Even assuming it doesn't collapse tommorow why should they make double digit returns on AI datacenters built on the backs of Americans?

[dpark]

My issue was not with criticism of the money being spent or how it’s being obtained. I was specifically commenting on this statement:

> “Im convinced none of these people have any training in corporate finance. For if they did they'd realise they were wasting money.”

This isn’t meaningful criticism. This is a vacuous “those guys are so dumb”.