this post was submitted on 23 Mar 2026
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[–] Eyekaytee@aussie.zone 2 points 9 hours ago (2 children)

Good post

Then the investments slow, so that cycle slows, and some companies can’t make payments on delivered product, others can’t deliver on paid for merchandise, confidence wavers and a lot of companies go under in rapid succession.

The only thing is you’re doing a direct comparison to the dot com bubble which was

This period of market growth coincided with the widespread adoption of the World Wide Web and the Internet, resulting in a dispensation of available venture capital and the rapid growth of valuations in new dot-com startups.

https://en.wikipedia.org/wiki/Dot-com_bubble

If you look at the big AI companies, Gemini is Google, Microsoft has its hands in many pies Copilot which is Chatgpt, Meta with llama and the big Chinese ones are massive companies as well Alibaba with Qwen, Deepseek is the side project of a hedge fund etc

So I think while some of the smaller ones will run out of money there’s also literally the biggest companies in the world backing it and ai isn’t their only revenue stream

So I doubt there will be quite the same bubble burst as the dot com bubble

At the same time if you’d asked me if an oil shock bigger than the 1970’s would tank markets and we’d all be in recession a year ago, I would have said yes so what do i know

[–] ricecake@sh.itjust.works 2 points 8 hours ago

I mean, it isn't history repeating itself exactly but it certainly has an echo.
I think openai is actually a great example for my point. They're getting investment money from these companies, which is often spent at these companies, and part of the reason for investment is to influence direction.

The dotcom bubble also had major companies making investments. It's that part of the bubble bursting is those large companies not withdrawing support, but stopping the continual increase in support. Microsoft, Apple and Cisco had massive losses during the bubble, despite being some of the biggest companies.

For bubbles in general, it's worth remembering that a crash is a time of unprecedented change. Before 2008 the thought of Lehman bothers suddenly going bankrupt was implausible. Same for Washington mutual. Fannie Mae and Freddie Mac were originally publicly traded companies until the government just took them to stabilize the housing market. (Being a government founded company makes it a little weird, but they weren't a part of the government)

So while I get what you're saying, it's a good idea to be wary of feeling that any company is ... Too big to fail. :)

[–] Blue_Morpho@lemmy.world 1 points 8 hours ago

Worldcom was gigantic and went bankrupt. Microsoft was so damaged that it took 15 years for its stock price to again reach its 1999 height.