Obviously yes. On evidence alone the path to profit doesn't exist for most of the massive capital sinks. A small number of players At best MAY return on investment, but in the cycle time capital needs a return, most are functionally incapable
AGI isn't happening. So, it's incremental improvements on LLM and Generative methods. Any advance which requires more tech inputs demands more capital. Any advance which requires less tech makes all the existing capex look stupid.
- For the AI provider it is a massive money sink due to cost/revenue maths
- For the AI consumer it's not a massive money sink if you arrange things so your ongoing costs are lower than your savings
It isn't a simple yes or no overall, only per side of the fence.