Reply to Is there an AI Bubble due to unrealistic expectations and mindless capital allocation?

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Reply to "Is there an AI Bubble due to unrealistic expectations and mindless capital allocation?"

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[quote=Anonymous][quote=Anonymous]AI industry appears to be in the bubble fueled by unrealistic expectations and potential misallocation of capital. Consequences for the economy and the tech sector is pretty huge given the massive valuation and record venture capital inflows. AI hype is largely disconnected from expected productivity gains and sustainable business success. With miniscule revenue, does anyone know where does Open AI get the funds for all these deals?

As influential figures claim early breakthroughs toward artificial general intelligence (AGI), yet concrete progress remains elusive. At this time, almost 95% of generative AI enterprise projects do not generate revenue, and many firms are forced to reverse costly layoffs. The scale of spending on AI infrastructure is heavily reliant on continuous inflows of capital. Many on TV now warn of growing risks as the AI bubble inflates and AI tools increase workloads rather than reduce them, such as programmers spending 19% more time due to AI errors and oversight needs. The bubble’s burst, when it comes, could inflict painful economic consequences, damaging retirement savings, shaking confidence across the world.

Any thoughts?[/quote]

Is this Ed Zitron posting on DCUM?

https://www.wheresyoured.at/openai-onetrillion/

Anyone who tries to actually nail down details on spending and projections by OpenAI comes up with...not much.  It's a ton of smoke and mirrors.[/quote]

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