Generative Artificial Intelligence

328 readers

1 users here now

Welcome to the Generative AI community on Lemmy! This is a place where you can share and discuss anything related to generative AI, which is a kind of technology that can make new things, like pictures, words, or sounds, by learning from existing things. You can post your own creations, ask for feedback, share resources, or just chat with other fans. Whether you are a beginner or an expert, you are welcome here. Please follow the Lemmy etiquette and be respectful to each other. Have fun and enjoy the magic of generative AI!

P.s. Every aspect of this community was created with AI tools, isn't that nifty.

founded 3 years ago

MODERATORS

Fubarberry@sopuli.xyz

How the AI bubble bursts (martinvol.pe)

submitted 6 months ago by Fubarberry@sopuli.xyz to c/gai@sopuli.xyz

6 comments fedilink hide all child comments

This is a look into how an AI bubble burst might play out. The biggest issue is money, companies like OpenAI and Anthropic are burning money with no good way to turn it profitable. Google can "win" the AI race just by continuing to spend money, and wait for the others to crash and burn.

OpenAIs recent attempts to turn a profit (shopping and sora) are both failing, and they've resulted to trying ads (which they had previously described as a last resort).

Anthropic is capturing the developer market, but some reports say their metered models cost 5x more than what people pay for them. It doesn't matter that they're having market success, if more users just means burning way more money.

If multiple major players crash or have to get bought out, we may see several major datacenters shutdown or underperform, which could have a strong ripple effect on the economy.

Noteworthy, this article doesn't include anything about the US government's involvement in AI. The US considers AI a race to reach AGI before china, and may attempt to prop up a failing AI market to achieve this.

you are viewing a single comment's thread
view the rest of the comments

[–] reksas@sopuli.xyz 4 points 6 months ago* (last edited 6 months ago) (1 children)

datacenters failing would likely give positive surge to component economy, as all the wasted capacity would be freed. Also companies would have to hurry to regain workers they replaced with ai when ai bubble bursts.

I can see nothing but positive effects from it, though they will likely be turned into bad ones by the rich. Or maybe one of the companies survives it and gains complete dominance they exploit slowly.

[–] Fubarberry@sopuli.xyz 5 points 6 months ago (1 children)

Also companies would have to hurry to regain workers they replaced with ai when ai bubble bursts.

Pretty sure this won't happen, a lot of the tech companies are reliant on investors to keep running. Before AI, the investors were cutting off money, and it was causing mass layoffs across the tech sector.

AI hype for investors throwing money at companies again, which has largely stopped the layoffs. It's also why every company was throwing themselves into AI even if their company model didn't really benefit. Saying they were AI focused got the investor money flowing again.

So if AI bubble pops, not only will a lot of AI companies layoff people, but the venture investors will probably tighten up on their investments, causing all the not yet profitable tech companies to shut down or rapidly enshitify to try to turn a profit. Meanwhile we'll see far more layoffs across the tech industry.

And with how interconnected economies are, it will probably trigger a pretty large economy wide recession.

Overall I expect it to be a bad experience for everyone.

[–] reksas@sopuli.xyz 2 points 6 months ago

ffs, i guess its time to leave it field for good.