AI TRENDS | Tether CEO Paolo Ardoino Says Big Tech AI Subsidies Rely on Rapidly Depreciating Infrastructure

Tether CEO Paolo Ardoino said large technology companies in the AI industry are subsidizing computing power to expand their user bases, relying on infrastructure expansion driven by high capital expenditures, with related assets often depreciating quickly within three to five years. According to Odaily, Ardoino said this approach is creating multiple structural mismatches. He listed mismatches between token prices and real value, between profit cycles and capital investment cycles, and between the cost of capital and debt maturity timelines. Ardoino also said open-source AI is continuing to erode revenue potential. Ardoino said that as these structural pressures accumulate, risks in the industry are building, and he questioned what could go wrong within such a structure.