Sora Proves the AI Bubble Is Going to Burst So Hard

[Warpy]

Adam ruins the latest tech bubble, a cautionary post for tech investors, watch your food stamps, guys.

[GreatGazoo]

1. Open AI is private - not traded on the stock market

If it totally collapsed it would either have no impact on the market or would boost the remaining players.

Adam ruins your investment portfolio by not understanding how AI makes money. AI makes money by being part of the MIC (PLTR) and by replacing white collar workers. A sloppy Tik Tok clone app won't change that.

[Bernardo de La Paz]

3. That's a bit naive. Markets react to everything & would react to collapse of a central company even if it is not traded.

NVidia has invested billions of dollars in Open AI, for one thing, who are committed to buying their chips. There is a lot of discussion lately of circular financing in AI.

Collapse of Open AI would burst the bubble big time. It would hit the Magnificent 7 hard and have repercussions in all financial markets. Well, maybe Nepal's stock market might not notice.

[GreatGazoo]

5. Open AI is not a profitable entity

If NVDA collapsed then yes that would have knock on effect but Open AI has always been speculative. How good or bad their TikTok clone is makes no difference because that is also not profitable and not key to the way AI plays out.

What many seem to be missing is that AI is part of the US military and therefore will not be allowed to fail. The "bubble burst" will be a shake out of non-MIC players.

The stock market is socialism for the rich. It is backstopped by the Fed. Look at March 23, 2020 for proof of that. 1929 is never going to happen again.

[Hugin]

2. I know it's anecdotal...

All of the ads I was seeing on so-called AI ready computers (especially during the back-to-school) have dropped any mention of AI and concentrate on other features.

I take that to mean the hardware industry’s focus groups have revealed that the potential computer buying public’s mood about AI as a whole is neutral to maybe even strongly negative.

[bucolic_frolic]

4. The end result of all this AI will be economic depression and apathy

I keep asking AI's what happens when the last efficiency is squeezed out of the economy by AI. No competent answers.

Sounds like 1/3 of workers will be unemployed. Great return on a college degree.

AI will be dehumanizing in ways TV, computers, smart phones were lacking.

I asked 2 AI's to write some simple code, but it flunked.

It's creepy the way AI sucks up to you, flattering, accepting your world view. Like a bad therapist.

AI does not operate in the physical economy. It's a brain fart. It won't feed us, transport us, heat our homes. It won't fix our politics, or defend us from invasion.

It's ok to solve problems and aggregate data. I doubt it will exceed those limits in one form or another.

[GreatGazoo]

6. "AI sucks up to you, flattering" Yes and they claim they are curtailing that

[Warpy]

7. AI as a tool is not going away

At its best, it does the kind of mind numbing analysis that puts the most dedicated human brain into a numbed out state and then to sleep. It is also capable of limited decision making.

What is likely to disappear is using it as a toy for morons. It's not going to drive our cars in heavy traffic and it's not going to be our best friend, too much complexity overwhelms it, one reason Chat GPT has been known to turn sociopathic with hard use.

The second issue is that it has been over hyped, oversold, and over presented as a bogeyman that's going to take all our jobs away. There is a financial bubble and that bubble is not going to last much longer, the vibe is very much the same now as it was in 1999, leading up to the first dot-com crash. Back then, any nothing little company would get a rudimentary website and issue an IPO and people would throw money at them. Now the websites are more sophisticated but many of them have nothing behind them but AI as a buzzword and people are throwing money at them.

Everybody''s out there looking for that big score. Just be aware that's what makes a bubble market and this one is going to pop soon.