Big Tech’s AI dilemma: massive investment, unclear returns

[ed]

Tim Cook’s response to questions about AI monetization offered few specifics. He emphasized that Apple is embedding intelligence across its operating systems in a “personal and private” way, arguing that this creates long-term value and future opportunities across products and services.

That answer reflects a wider trend in the tech industry. Despite heavy spending, many companies have yet to clearly articulate how AI will translate into profits. OpenAI, for example, has indicated it does not expect to be cash-flow positive until at least 2030, with analysts questioning whether that timeline is realistic given capital requirements.

As AI costs continue to rise, investors may increasingly demand clearer answers. For now, the industry appears confident that value creation will eventually lead to monetization — even if the mechanics remain undefined.

[tradelikepro]

“we’ll figure out monetization later” feels fine until the burn rate shows up on an earnings call.