Technology

It seems like the wealthy propping up their own bubble.

I don't think it's a bubble, first there is absolutely zero comparison to the housing bubble, which was a financial problem that caused housing prices to inflate, while the inherent value of housing stayed the same. This alleged AI bubble is mostly driven by companies that have lots of money, so it is not credit based, and there are underlying products that actually have increasing value.

The better comparison would be the dot com bubble, which was dominated by companies that didn't even have a product and didn't make any money. The frenzy is similar, but the fundamentals are different.

AI investments may cool down because obviously there is a frantic race in an attempt to get ahead.
But the reason I don't think the AI bubble will burst is because it is driven by companies that actually make money.
They may lose money investing too heavily in this, but the most companies investing in this can afford it.

I think the most AI bubbly company isn't even in the diagram, because that is Tesla. Tesla might actually go down, because Musk is insane.

But in general if it is a bubble, it is a very very long one, Nvidia value has been exploding since 2016 based on their AI product dominance. If this is a bubble, I think it will go down in history as the longest living bubble ever.

Is the market frantic? Yes absolutely.
Is the value of some AI companies extremely high? Yes absolutely.
Is it a bubble that will burst? No if it's a bubble, this one will be more like deflating to a less frantic level, because ALL the main players have the money to weather losses.
And the main AI companies have actual products that make money for them rolled out already. So it is not like the dot com bubble.

All ai companies should direct all resources to medical research. I mean we would have to do without ai slop summaries for search engines and ai slop images. Well on second thought I guess slop is worth the human cost so let's keep it as it is. I bet I get my wish.

The housing bubble encompassed a metric ton of banks and companies that bought and sold shares of subprime mortgages in the billions of dollars and when everyone stopped paying and started defaulting, that caused a entire economic collapse.

Now unless someone can point me to an analysis where we have some tangible proof that banks and tons of companies are invested, not just using, AI, it seems to me the fall out would be limited to tech companies, which yeah would involve some job losses but nothing on the scale of the housing or dotcom bubble.

Now if you're referring to rich jackasses who are all in and banking on AI taking our jerbs? Sure that bubble will hurt them but they're not driving forces in the economy, just politics, which I guess could cause a economic crash if they get your idiot politicians more scared of them than the people with France on their minds.

Anyone more knowledgeable care to help me understand where Anthropic is on this graphic/clusterjam?

This only got downvotes in another thread. There is far worse that can happen than an AI bubble.

People get distracted over the fate that the pure speculative frenzy could be an AI bubble, and the harm to the hapless speculators and banksters could have a minor impact on the rest of the economy.

Reality is far worse than an AI bubble. It is a US mission for a fossil fueled powered Skynet for Israel that is too big to fail. Bubble in AI investments becomes unlikely, but total destruction of rest of US economy/prosperity becomes assured when the "plebs able to eat in America bubble" bursts is a sacrifice that a fossil fueled powered Skynet for Israel is willing to make.

If Americans are still able to afford to eat, then China or Iran wins.