AI development and the contradictions of capitalism

The development of artificial intelligence (AI) is accelerating, with investments reaching trillions of dollars, but experts like Nick Beams warn that it may lead to economic and financial crises, as the technology conflicts with the capitalist market and profit system, potentially wiping out companies and leading to massive job losses.
The initial business model for AI, which relied on massive investments by "hyperscalers" like Amazon, Google, and Microsoft, is being questioned, with concerns over circular deals and the potential for a false picture of economic health, similar to the dot.com bubble, as seen in the 20% fall in Amazon's share price since its peak in November.
The introduction of AI may also lead to "moral depreciation," where investments become stranded assets due to the rapid development of superior products, as seen in the case of Blackberry, and the recent news that Chinese start-up DeepSeek has developed a chatbot at a fraction of the cost, utilizing less powerful chips, which has jolted major AI firms and investors, according to the Australian Financial Review.