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-failureposted 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-failureReplying to @eicker@lemmy.world
How long has AI been “teetering on the brink“?
Replying to @charokol@lemmy.zip
Depends if you’re asking people who are informed or news headlines. The informed people have been saying the AI bubble is set to burst around Q2-Q3 2027. That’s when loan obligations come due and the majority of investors are set for payouts.
The news will say it’s happening everyday, just like Trump is just about to die everyday, or MAGA is “turning against him” everyday according to the articles.
Replying to @Corkyskog@sh.itjust.works
Ai can crash before then, if people stop investing money or loaning money. It doesn’t mean OpenAI run out of money straight away, but it means the projects they are involved in don’t happen, so the mountain of debt piles up and the sources of revenue dry up. So, it all happens faster and the smaller neo-clouds go belly up first.
Already an Aussie one just pulled its launch IPO due to lack of interest and were considering dropping their price significantly.
If the IPO prices of other companies drop significantly, it means the early investors make very little profit, for a lot of risk, so they start to look elsewhere too.
AI companies need huge amounts of investment over extended periods, so either scenario is problematic for them.
Replying to @hitmyspot@aussie.zone
Open AI is already backing out of their IPO too.
Replying to @cantstopthesignal@sh.itjust.works
Most I’ve seen is because they don’t want to release their real financials. So it must be bad enough to spook investors even more than the delay.
Replying to @Corkyskog@sh.itjust.works
republicans usually crash the economy right toward the end of their term, yeah. pretty much every single time. So Q3 2027 is perfect.
Replying to @Corkyskog@sh.itjust.works
2027
My guess would be 2029, because history doesn’t repeat itself but it often rhymes and I want to see Musk jumping down from one of his rockets, but it probably won’t last that long, yes.