Value investor Duan Yongping responded to a user, saying that Internet giants' revenues are not deteriorating and their heavy investments in artificial intelligence (AI) are necessary for the future, but the current spending resembles a "prisoner's dilemma" where companies that do not invest risk falling behind.

Duan wrote: "Their income has not deteriorated. It's just that AI requires investment for the future." He acknowledged that the massive capital expenditure may pressure free cash flow in the short term but denied that business models are worsening. The user had asked whether Big Tech firms are becoming heavy-asset companies with uncertain returns, making their business models weaker.

Duan, known for his value-investing approach, often comments on tech stocks. His remarks highlight the competitive dynamic driving AI spending, suggesting that firms face a choice between investing now or risking obsolescence.