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The capital structure of frontier AI makes the investment decision unusually sticky.
Hardware and infrastructure built for large-scale model development cannot be quickly redeployed if the expected returns do not materialize.
ByteDance, the Chinese company behind TikTok, is pouring resources into this technology. Some observers regard the commitment as a serious gamble.
The direction ByteDance has chosen ByteDance has made artificial intelligence a clear priority, committing substantial resources to a technology that requires sustained spending before returns emerge.
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