AI business profitability likely to decline due to financing costs and approval delays

Moon Pursuit Capital founder and managing partner Utkarsh Ahuja warned that capital-intensive AI projects could see lower returns even if demand meets expectations, as rising financing costs and longer approval timelines weigh on profitability, CoinDesk reported. He argued that demand forecasts alone cannot guarantee project profitability, and that elevated inflation could limit the Federal Reserve's ability to support markets even if tech stocks weaken. Ahuja pointed to recent comments from San Francisco Fed President Daly hinting at further rate hikes as a sign investors should not assume near-term central bank support. The remarks matter for AI-linked crypto and tech ventures that depend on cheap capital and fast regulatory sign-offs to hit projected yields. What to watch next is whether inflation data and Fed commentary shift expectations for financing conditions and approval schedules.