posted in Technology
AI Bubble Teetering on the Brink as OpenAI Admits to Massive Financial Failure: A $20 billion setback.
futurism.com/future-society/ai-financial-bubble-openai-billions-failure
Replying to @eicker@lemmy.world
How long has AI been “teetering on the brink“?
Replying to @charokol@lemmy.zip
Most of the historical boondoggles took about 5 years to work their way out. We are on year 3. If that’s any guide, we got a whole lot more electric boogaloo left to play.
Replying to @cantstopthesignal@sh.itjust.works
Most boondoggles don’t burn trillions of dollars. AI is starting to hit a wall already because there just isn’t any more money. It’s why there’s this desperate push to go public even though their financials are a dumpster fire.
Replying to @zurohki@aussie.zone
As a percentage of Capex to GDP it’s about a third of the way to where the railway mania was at during its peak. There’s room to run. The difference between then and now is that all the spending is concentrated in a handful of companies.
Replying to @cantstopthesignal@sh.itjust.works
Another key difference, the Railway mania was powered by commoners investing. Not just a few rich bozos and enormous enterprises putting their money into it, as it is with AI
Replying to @zurohki@aussie.zone
“We must keep building stone heads!” Easter Island civilization
“We must keep building datacenters!” Epstein Island civilization