Tether CEO Warns AI Giants' Subsidized Compute Model Creates 3-5 Year Asset Depreciation Risk

According to Tether CEO Paolo Ardoino's statement on X today (July 4), the AI industry's push by major tech companies to subsidize computing power in exchange for user scale is building structural economic risks. Ardoino flagged that GPU and server hardware depreciates within 3 to 5 years, creating mismatches between token valuations and underlying asset values, delayed profit realization versus capital spending timelines, and debt repayment periods that don't align with funding costs. He also cited open-source AI models fragmenting revenue opportunities, warning that these compounding pressures may trigger operational and financial crises.
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