Tether CEO Warns Big Tech’s AI Spending Model Is Built On Shaky Ground

Tether chief executive Paolo Ardoino has raised doubts about the long term sustainability of heavy AI spending by major technology companies, arguing that the current approach prioritizes user growth over profitability.

Subsidized Growth, Depreciating Assets

Writing on X, Ardoino said big tech firms are subsidizing computing costs to expand their user bases while pouring money into large-scale infrastructure that could lose significant value within three to five years. He described this as a structural problem rather than a temporary one, pointing to heavy capital expenditure built around assets with a short useful life.

Several Mismatches Flagged

Ardoino outlined multiple areas of concern, including a gap between token pricing and the underlying value being delivered, a mismatch between when revenue actually comes in and when investments are expected to pay off, and a disconnect between funding costs and the timelines companies are investing against. He also pointed to open source AI models as a factor steadily eating into potential revenue for companies relying on proprietary systems.

Building Structural Risk

According to Ardoino, these pressures are accumulating within the industry, and he questioned what could eventually break under that weight. His comments add to a broader conversation about whether current AI infrastructure spending, often funded through debt and aggressive capital expenditure, can be sustained if growth in paying users doesn’t keep pace with the scale of investment.