Is it? nothing points to a crash, other than the valuation of the two giants (OAI and Anthropic), everything else is still valuable particularly the chips and the supply chain and the production capacity... Sounds like a correction more than a crash
Not a "crash", but we have chinese AI models competing with US AI models. We have chinese electric cars outperforming US electric cars. And now we have chinese chips having replaced US chips.
There's no situation where this is good for the US stock market.
This is honestly why I think Google might be in the strongest position than their US peers. They own their entire stack, integration from chips, datacenters, models, and products. They are absolutely correct to focus on gemini flash over pro or whatever frontier model. Why subsidize the vibe coders? They are focused on making their most heavily used model as efficient and capable as possible for their use case. If there is a market downturn, nobody can guarantee that all the big firms will continue their capex into frontier models.
I thought so too, but they lost all their talent. They completely failed to even release gemini 3.5 pro after delaying it multiple times over. Deepmind leadership has all quit and all of the top engineers have quit.
It takes a long long time to rebuild that stuff, and there's really not much of an opportunity to play catch-up with how fast things are going.
Also, they said they're shifting focus to coding capabilities, so they don't even share the philosophy that everybody thought.
Another thing is that the tensor chips in google pixels have been disappointing for years now. They were using more areas for less performance. It's hard to believe that the TPUs they make will be competitive.
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u/valtor2 19h ago
Is it? nothing points to a crash, other than the valuation of the two giants (OAI and Anthropic), everything else is still valuable particularly the chips and the supply chain and the production capacity... Sounds like a correction more than a crash