It seems like the wealthy propping up their own bubble.
this post was submitted on 11 Oct 2025
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Well, they now control all the money, so they can decide all the value.
I see "gold rush" the company selling shovels is making out like a bandit, everyone else is make a profit on the previous gen but requires a 10x cost increase for the next gen. And thus 10x more shovels.. As soon as 10x more shovels stops giving 10x+ improvements this is the wrong investment.
Hints are we already reached this point.
Some AI companies will pivot and improve in other ways with more linear costs/results.. The ones hoping the line continues to the moon.. I think they overshot.. I just don't know when it will fall back..
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.
What
please be more specific in what you don't understand. I guess that...
fossil fueled powered Skynet for Israel
US government needs AGI for US military supremacy. That is Skynet (in Terminator movies, this is the military program to install AI in all the computers, and then AI chooses genocide nuclear launch). It is for Israel's benefit, because that is who owns US government. That it be fossil fuel powered, serves another key US oligarchy. Skynet for disinformation/sediction detection purposes just as much of a threat than its use for nuclear genocide.
Regardless of whether datacenters will make money solving business and individual problems or boosting productivity, the US will keep investing in order to get Skynet. You can be correct that "frontier datacenter LLM models" will not make money, but still lose on financial bets validating that idea. Instead of an AI bubble bursting, even more money chasing Skynet will come with Austerity for rest of population. The "valuation bubble" only pops when investor money flowing in dries up. It may only dry up after the collapse of the US.
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Anyone more knowledgeable care to help me understand where Anthropic is on this graphic/clusterjam?
If not for the banks investing hevily into it, i'd not be all that worried.
Every company in that list could shrink by half and we'd all be at worst back to covid times. Sure unemployment would suck, but do we REALLY need microsoft and NVidia to be as huge as they are?
This is fine 🐶☕️🔥
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.
True, but consider that a huge amount of retail investors' portfolios are tied to the S&P 500/NASDAQ. Think retirement savings, IRAs, 401(k)s, pensions, etc. Then consider that the entire market is effectively propped up by AI right now (see: The entire stock market is being carried by these four AI stocks). If the market gets a 60% correction, it's going to be the middle class losing their shirts all over again.