The AI bubble is popping

[Anonymous]

Anonymous wrote:First, we have Sam Altman admit AI companies are way overvalued and overhyped, and that a lot of money will be lost on this bet, now we have Meta downsizing their AI division per NYT.

The past few months we’ve seen a random 24 year old AI guru offered $250M to work as an employee at Meta (more than the Microsoft CEO makes), and OpenAI paid $1.5M cash retention bonuses to thousands of employees.

I’m not shorting, but I’m definitely cashing out at this point. Things are getting silly.

Zuck and Meta are probably one of the worst when it comes to throwing money at bad ideas. Facebook credits. The metaverse/VR headsets. Portal. Poke. Pulse. Beacon. Diem. Lifestage. Slingshot. Rooms. Creative Labs. They were all supposed to be the next big thing.

lol

[Anonymous]

Anonymous wrote:

Anonymous wrote:It would be unheard of for the tech sector to spend millions of investor dollars without producing what is promised.

You don’t remember the dot com bust.

Or the Y2K bust?

[Anonymous]

It has been incredible to watch how far LLMs have come in the last few years, but there still doesn't seem to be a real path to profitability for the infrastructure companies.

[Anonymous]

The amount of resources being put into data centers is crazy. Somebody believes they're here to stay...

[Anonymous]

Anonymous wrote:It has been incredible to watch how far LLMs have come in the last few years, but there still doesn't seem to be a real path to profitability for the infrastructure companies.

So true, they have the number of fingers on the generated pictures down to only six most of the time!

[Anonymous]

Anonymous wrote:The amount of resources being put into data centers is crazy. Somebody believes they're here to stay...

Reminiscent of the optical fiber craze in the dot com era. GX anyone?

[Anonymous]

AI is the new NFT.

[Anonymous]

Anonymous wrote:It has been incredible to watch how far LLMs have come in the last few years, but there still doesn't seem to be a real path to profitability for the infrastructure companies.

Once they own the infrastructure, they can sit back and watch the money roll in. Imagine if a couple of companies owned all the roads in America. It will be like that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It has been incredible to watch how far LLMs have come in the last few years, but there still doesn't seem to be a real path to profitability for the infrastructure companies.

Once they own the infrastructure, they can sit back and watch the money roll in. Imagine if a couple of companies owned all the roads in America. It will be like that.

Yeah just have the problem of needing to repay the 500 billion in equity to build everything, supported by a product that people will not pay for, or not pay the marginal cost of the electricity and operations of the systems.

[Anonymous]

Do you guys think investors are putting some much in AI because they think it will result in massive headcount reduction? But we are the investors, so why do we spend to put ourselves out of work permanently?

[Anonymous]

Anonymous wrote:Do you guys think investors are putting some much in AI because they think it will result in massive headcount reduction? But we are the investors, so why do we spend to put ourselves out of work permanently?

They hope to get rich and it's logical that other jobs will be created.

[Anonymous]

Anonymous wrote:Do you guys think investors are putting some much in AI because they think it will result in massive headcount reduction? But we are the investors, so why do we spend to put ourselves out of work permanently?

They are putting so much into AI because it's venture capital groupthink and the established companies feel like they have to do it to "show we are keeping up".

The reckoning is coming and it's going to be a massive correction.

[Anonymous]

I have 2 kids aged 11 and 13. The 11 years old uses AI for everything and she knows how to prompt various AI systems to get answers. My 13 years likewise. I am 46 years old. Perhaps people my age are skeptical about AI, but I think it will play a major part in the future.

[Anonymous]

Anonymous wrote:I have 2 kids aged 11 and 13. The 11 years old uses AI for everything and she knows how to prompt various AI systems to get answers. My 13 years likewise. I am 46 years old. Perhaps people my age are skeptical about AI, but I think it will play a major part in the future.

That’s great, but they can’t think critically.

AI is to the brain what things like cars and power tools were for human physical activity. Outsourcing physical activity weakened people’s physical ability. Next up: outsourcing thinking and weakening people’s ability to analyze and create.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have 2 kids aged 11 and 13. The 11 years old uses AI for everything and she knows how to prompt various AI systems to get answers. My 13 years likewise. I am 46 years old. Perhaps people my age are skeptical about AI, but I think it will play a major part in the future.

That’s great, but they can’t think critically.

AI is to the brain what things like cars and power tools were for human physical activity. Outsourcing physical activity weakened people’s physical ability. Next up: outsourcing thinking and weakening people’s ability to analyze and create.

Also, each of those prompts costs something like $10 in computing and electricity costs, they just aren't getting passed along to the gen pop end user right now. If they were actually charging what it costs to run these systems, almost nobody would pay it.