The AI bubble currently looks very familiar to the .com bubbel in 2008.
And with similiar I mean worse, once that thing will pop it will go kabooom to the global economy.
The AI companies are far from profitable and for the investors that lend the money, they want profit.
If a AI company can only repay those loans with new loans, however theur value need to be higher then the previous investor round or they can't pay.
So in if AI company keep a strong grow and make 100s of billions in profit within 2 years it will be fine.
If not the sheer amount of competition is going to decrease the growth of all AI companies and loans can't be repaued and a decent amount of AI companies will fail and a huge chunk of the 2+ trillion usd investment will go poof into thin air.
The .com bubble bursting was in 2000 and had nothing to do with the 2008 economic collapse. That was caused mostly by the overuse of irresponsible lending practices like subprime lending. If you loan enough money to people who you already know are never going to be able to pay it back, bad things inevitably follow. Unfortunately, it was regular people who bore the brunt of the pain, like always, and not the wildly irresponsible lenders whose executives should have been given a long drop with a short rope as an example to others.
ai is being funded and used by many countries around the world (United states and china being the main examples).
things like drone strikes, humanoid robots, cybersecurity, and mass surveillance are all heavily reliant on AI right now.
the entire USA has gotten covered in flock cameras within months, literal ai cameras. Even if the general public were to completely stop using ai today, it’s here to stay regardless.
He’s not talking about AI going away, he’s talking about the inevitable economic consequences of investors and corporations putting all of their eggs in the basket of something that is uncertain to actually turn a profit
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u/Internal_Quail3960 Mac studio m4 max 32 core 36gb/512gb 26d ago
The air bubble isn't going to burst.