this post was submitted on 30 Oct 2025
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[–] DarrinBrunner@lemmy.world 24 points 3 days ago (1 children)
[–] Petter1@discuss.tchncs.de 2 points 1 day ago* (last edited 1 day ago)

They will just wait it out until teens will not be able to use a search engine, because they grow using free GPT and as soon as those earn enough money, they’ll start the enshitification.

Of course, teachers and students will have still free access, do that they not learn to find stuff not with AI.

[–] AnAverageSnoot@lemmy.ca 239 points 4 days ago (11 children)

AI is funded solely by sunk cost fallacy at this point. I wonder how long it will be before investments start getting pulled back because of a lack of ROI. I can already feel the sentiment towards AI and it getting pushed in everything turning negative amongst consumers recently.

[–] SSUPII@sopuli.xyz 41 points 4 days ago* (last edited 4 days ago) (5 children)

Investment is done really to train models for ever more miniscule gains. I feel like the current choices are enough to satisfy who is interested in such services, and what really is lacking is now more hardware dedicated to single user sessions to improve quality of output with the current models.

But I really want to see more development on offline services, as right now it is really done only by hobbyists and only occasionally large companies with a little dripfeed (Facebook Llama, original Deepseek model [latter being pretty much useless as no one has the hardware to run it]).

I remember seeing the Samsung Galaxy Fold 7 ("the first AI phone", unironic cit.) presentation and listening to them talking about all the AI features instead of the real phone capabilities. "All of this is offline, right? A powerful smartphone... makes sense to have local models for tasks." but it later became abundantly clear it was just repackaged always-online Gemini for the entire presentation on $2000 of hardware.

[–] mcv@lemmy.zip 40 points 4 days ago (2 children)

They're investing this much because they honestly seem to think they're on the cusp of super intelligent AGI. They're not, but they really seem to think they are, and that seems to justify these insane investments.

But all they're really doing is the same thing as before but even bigger. It's not going to work. It's only going to make things even more expensive.

I use Copilot and Claude at work, and while it's really impressive at what it can do, it's also really stupid and requires a lot of hand holding. It's not on the brink of AGI super intelligence. Not even close. Maybe we'll get there some day, but not before all these companies are bankrupt.

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[–] artyom@piefed.social 27 points 4 days ago (2 children)

I knew it was a bubble since Computex January 2024 when Derb8uer showed an "AI PC case". He asked "What's AI about this PC case?" and they replied that you could put an AI PC inside it.

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[–] cupcakezealot@piefed.blahaj.zone 27 points 4 days ago (2 children)

AI is funded solely by sunk cost fallacy at this point.

and the us economy an gdp relies solely on ai make of that what you will.

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[–] Taldan@lemmy.world 15 points 4 days ago (1 children)

I wouldn't have a problem if they were actually investing the money in something useful like R&D

Nearly all the investment is in data centers. Their approach for the past 2 years seems to be just throwing more hardware at existing approaches, which is a really great way to burn an absurd amount of money for little to nothing in return

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[–] Doorknob@lemmy.world 24 points 3 days ago

Who wants to give me a billion dollars to dig a hole and I'll give you a billion to fill it back in and we'll both say to investors we posted a billion dollars in revenue.

lol. lmao, even

[–] someacnt@sh.itjust.works 65 points 4 days ago (2 children)

Maybe, just maybe, the bubble started bursting now.

[–] kadu@scribe.disroot.org 37 points 4 days ago (19 children)

I wish. Even knowing it's all a gigantic scam, they'll first protect themselves before letting it burst and screw everybody else. The rich get a buffer period.

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[–] ReHomed@lemmy.cafe 50 points 4 days ago (2 children)

Good.

Fuck AI, send it directly to hell.

[–] Taldan@lemmy.world 43 points 4 days ago (4 children)

AI is here to stay. AI is also in an unsustainable bubble. Both things are true

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[–] Arcane2077@sh.itjust.works 87 points 4 days ago (6 children)

is this $11,500,000,000 in real money or speculative money?

[–] msage@programming.dev 42 points 4 days ago
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[–] tonytins@pawb.social 32 points 4 days ago (2 children)

I thought for-profit companies were supposed to make a profit...

[–] finitebanjo@lemmy.world 68 points 4 days ago (1 children)

Well actually there is a long and rich history of companies that are able to operate at a loss using funds appropriated from sale of shares to investors, and this process continues so long as new investors keep buying in such that anybody selling out is covered by the new funds until enough people try to sell out that the price starts to plunge, although the collapse can be delayed by the company strategically buying back and occasionally splitting or reorganizing, meaning everyone gets their money back unless they sell too late.

You know.

A fucking Ponze Scheme.

[–] reptar@lemmy.world 12 points 4 days ago (1 children)

Well that's a damn good post Mr banjo

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[–] Tiresia@slrpnk.net 19 points 4 days ago

Oh honey, that hasn't been true since 2008.

The government will bail out companies that get too big to fail. So investors want to loan money to companies so that those companies become too big to fail, so that when those investors "collect on their debt with interest" the government pays them.

They funded Uber, which lost 33 billion dollars over the course of 7 years before ever turning a profit, but by driving taxi companies out of business and lobbying that public transit is unnecessary, they're an unmissable part of society, so investors will get their dues.

They funded Elon Musk, whose companies are the primary means of communication between politicians and the public, a replacing NASA as the US government's primary space launch provider for both civilian and military missions, and whose prestige got a bunch of governments to defund public transit to feed continued dependence on car companies. So investors will get their dues through military contracts and through being able to threaten politicians with a media blackout.

And so they fund AI, which they're trying to have replace so many essential functions that society can't run without it, and which muddies the waters of anonymous interaction to the point that people have no choice but to only rely on information that has been vetted by institutions - usually corporations like for-profit news.

The point of AI is not to make itself so desirable that people want to give AI companies money to have it in their life. The point of AI is to make people more dependent on AI and on other corporations that the AI company's owners own.

[–] blueamigafan@lemmy.world 67 points 4 days ago (4 children)

I look forward to the AI bubble bursting, and billionaires looking shocked, 'because there were no signs'

[–] Valmond@lemmy.world 58 points 4 days ago (2 children)

They won't lose any money...

[–] tburkhol@lemmy.world 37 points 4 days ago (9 children)

In contrast to the housing bubble, where a lot of the value was in overpriced houses sold to individuals, this overpricing is almost entirely in tech stocks, and tech stocks are almost entirely owned by by the wealthiest 10%, even 1%. The tech billionaires have limited ability to divest themselves of their own overpriced companies and absolutely will lose money.

None of them are going bankrupt, they'll all be just fine when the market recovers in a few years, because that's the nature of capitalism. A bunch of peons, who convinced themselves that the bubble-value of their 401k meant it was safe to retire, will suffer, will have to go back to work - if you're not an oligarch, losing money is painful.

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[–] Emilien@lemmy.world 52 points 4 days ago (3 children)

So they "lost" $11.5B? Cool, I lost 20 bucks last week and still had to explain it to my accountant 🤭 Feels like the entire AI industry is built on "don't worry, growth will save us", but at some point someone has to pay the electricity bill...

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[–] stringere@sh.itjust.works 8 points 3 days ago (1 children)

Did they check the couch cushions?

[–] titanicx@lemmy.zip 6 points 3 days ago (2 children)

It's all the Starbucks they're buying

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[–] oakey66@lemmy.world 34 points 4 days ago

Wow. Glad they just converted to a for profit entity! Can’t wait for them to unleash all this success on to the the general financial market.

[–] misteloct@lemmy.dbzer0.com 17 points 3 days ago (1 children)

You have to make money to lose money.

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[–] x00z@lemmy.world 29 points 4 days ago (2 children)

The whole "AI" thing is one big grift.

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[–] avidamoeba@lemmy.ca 34 points 4 days ago (3 children)

This reminds me of something that came up recently. Copilot started hallicinating quite a bit more than usual in Copilot reviews. That made me think about the cost of operarion. As they burn money like this, I won't be surprised if they start decreasing inference quality to decrease cost per user. Which also means people relying on certain model behaviour for tasks could get nasty surprises. Especially within automation workflows where model outputs aren't being reviewed.

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[–] jlow@discuss.tchncs.de 17 points 4 days ago
[–] sirico@feddit.uk 33 points 4 days ago

Hubble bubble S&P's in trouble

[–] Bronzebeard@lemmy.zip 16 points 4 days ago

Is that why MSFT dumped like 3.5% today?

[–] vane@lemmy.world 25 points 4 days ago* (last edited 4 days ago) (1 children)
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[–] popekingjoe@lemmy.world 26 points 4 days ago

Oh no!

Anyway...

[–] brownsugga@lemmy.world 24 points 4 days ago (7 children)

apparently the bubble might not be as extreme as some people think because the major AI players are all being propped up by companies that actually produce revenues and profits

[–] IndustryStandard@lemmy.world 20 points 4 days ago* (last edited 4 days ago) (10 children)

Like Nividia which... Oh all based on AI revenue.

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[–] IWW4@lemmy.zip 26 points 4 days ago (1 children)

12 billion in one quarter…. Holy fuck

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[–] crimsonpoodle@pawb.social 4 points 3 days ago

But when will i get cheap GPUs

[–] Zwuzelmaus@feddit.org 27 points 4 days ago (6 children)

But that's what they wanted anyway, isn't it?

Burning shitloads of money.

Waiting until they can later, finally, rule the world.

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[–] Wispy2891@lemmy.world 2 points 2 days ago

What? The line goes up? Where I can invest my life savings in the IPO?

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