AI's Risky Bet: Pay Up or Else
📡 CNBC Top News · 1 min read ·
Part of composite article AI Giants Spend Billions to Lock In Computing Power as Germany Doubles Data Centers View full article →
Tech companies are borrowing a hardball tactic from the energy industry. It is called "take or pay."
Here is how it works: A customer signs a contract with a fixed start date. They must pay for a product whether they actually use it or not.
AI companies are now using these deals. The goal is to lock in massive computing power and funding. But the strategy carries risk. If the AI boom cools down, customers will still be stuck paying millions for services they do not need.