Mainstream News Anchors Now Talking About the AI Bubble Bursting at Any Moment: "I think the entire AI boom is investing in the wrong future."

Yes any time now. Just like in 2022, 2023, 2024, 2025…

Nvidia is not even overpriced. If anything, it’s underpriced because it’s a 5 trillion dollar company and the market doesn’t believe it will be able to keep growing.

I dont believe this technology will become anything actually smart. It’s still just text prediction. But it’s good enough for a lot of usecases.

It isn’t profitable at current pricing, and it will have lower adoption at higher pricing.

The technology isn’t going anywhere, when the bubble pops and hardware prices come down, local open weight models will be sufficient and the hardware to run them will be cheaper than cloud models.

In the short term, however, it’ll be a shit show.

I really wish you guys who believe this would be able to go forward in time and see what happened. :)

Do you have a reason to believe what I said is unbelievable?

It’s their own numbers…

Maybe, but im convinced it will work just like any other technology that has arrived before it.

Currently we are in the hype stage where so called experts are warning the technology can kill humanity and other silly things.

But this will pass. The technology will continue to be very useful to both companies and individuals and because of this, pricing will adapt. This means less price for the consumers as number of users and competition goes up.

We will have a society where Ai is used to take our orders, find our information, do a lot of office job tasks. It will become just as common everywhere as screens and phones.

And people say it’s not going to be profitable? That’s extreamly improbable. Every technology that is used by everyone is highly profitable, it’s just a matter of which companies will win the market and which won’t.

There won’t be any bubble popping because it’s not a bubble. It’s a new technology, like phones and laptops once were too. I had one of the first smart phones actually and in watched that market explode over the coming decade. That market is now stagnated, more of less. But Ai has only just begun.

The problem is not that it’s a useful tool for some applications. The problem is the insane amount of money thrown at this which is not possible to repay unless their product achieves runaway AGI and can actually cause these doomsday scenarios. They have no path to profitability. Like, none.

These companies are so rich and already have existing revenue in billions, so even if the Ai bet doesn’t work out, they can simply pay off their debt using their ordinary revenue.

It would disappoint the stock market, sure, but I doubt that it would create anything more problematic than maybe a 20% drop in the stock, temporarily. And that would be because investors would know that the future will not contain the promised profits. But the companies would still be fine, still be able to pay their debts, and still be able to run their business as usual.

Its not like in dot com where companies without revenue got to borrow tons of money they could never pay back.

Its not like in dot com where companies without revenue got to borrow tons of money they could never pay back.

It’s exactly that, but much worse. These companies do not make money. They lose tons of money every quarter. They have revenue but it doesn’t even cover their operations cost. But that’s not even the expensive part; training new models is hideously pricey and that will not change. And they must keep training new models lest they “fall behind” in this race to the bottom. OpenAI owes a Trillion and a half dollars to their investors. They have at least a trillion in obligations to compute providers. They keep taking more investor money, most recently with SoftBank who sold junk bonds to raise it.

Not to worry, OpenAI may lose money on every sale, but they make up for it in volume!