Current Events > Is the economy basically just a troll logic comic now?

(+) Yeah! (+)

https://gamefaqs.gamespot.com/a/forum/a/a7832aa0.jpg
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It does look like a bubble. I notice it's just tech bros that are hyping up AI.

AI is not a bubble but the monetization of it could be.

Rai_Jin posted...

AI is not a bubble but the monetization of it could be.

https://x.com/NewsWire_US/status/1974255646800589152
Also,
https://gamefaqs.gamespot.com/a/forum/a/a7aaf141.jpg

OpenAI seeks to create a god and so needs the bubble to keep growing until they succeed.
Nvidia knows it is a bubble, but think they can use it to make lots of money.

The AI bubble people in often seem to think if everyone stops investing in AI the current AI will just stop existing and not be able to be used anymore. Your best case scenario is current AI exactly as it is with no improvement (which seems extremely unlikely because even without investment open source people will continue to work on it, just like all other software).

It always is when Republicans are put in charge of the damned thing.

Oh yeah baby, that sweet sweet sexy bubble action right there!

The irony is AI is actually an incredible tool in very specific science sectors. But that's not what's being pushed, it's being pushed into everywhere (where it makes zero actual sense) and is quite literally contaminating the internet and will in the near future make the Dead Internet Theory the Dead Internet Reality.

Just yet another vector for the collapse of civilization really. Yay!

Aw yes NVIDIA the *checks notes* AI company.

Yes, it's a bubble.

Many of those receiving investment will not be able to deliver the returns they promised. Lots of people will lose lots of money.

If Deekseek wasnt banned immediately on top of never being mentioned or advertised then the US tech industry would probably have collapsed by now.

Which is as pity since its comparable to the best US AI models but at a small fraction of the resources and cost. So were going to needlessly buy and build numerous and super expansive energy guzzling data centers for nothing.

I remember reading something that AI would need to make trillions in revenue to justify these market caps.

Garioshi posted...

https://x.com/NewsWire_US/status/1974255646800589152
Also,

sure they're always talking about the valuation. But is AI going to vanish from Google or competitors soon? Probably not. AI is here to stay, whether it makes big money or not.

Just because something is a bubble doesn't mean it isn't real or that it has no value. There is definitely an AI bubble, but that doesn't mean AI is going to go away when it bursts, any more than the internet disappeared after the dot com bubble burst.

AI is not a complete lie. There is real, useful technology there. It's just that all the companies are trying to push it as earth-shattering, revolutionary technology that will rock the world and change every aspect of our daily life. And it's not that, the places where it's actually better than than existing technology. But the companies have sold it as that, and people are investing in it in the hopes that it will soon be an industry that rakes in trillions in profit. When realistically, even 100 billion in profit is very optimistic.

What I think is likely to happen is that people will panic, the market will crash, and shrink dramatically. The small AI companies will die, the big ones will shrink, and the other tech companies will stop trying to shove it everywhere. Then it will slowly go back to growing again, in ways that are actually useful this time.

The AI bubble is one of the biggest debates in tech right now.
Heres a balanced breakdown of the situation:
Reasons People Think Were in a Bubble

1. Sky-high valuations:
2. Companies tied to AI (like Nvidia, OpenAI partners, or chip startups) have market caps that assume explosive, indefinite growth. Many smaller AI startups have valuations far beyond their actual revenue or even viable business models.
3. Speculative investment:
4. Venture capital is pouring money into anything labeled AI, often without clear differentiation or defensible tech. This mirrors the dot-com boom, where everyone had to have a .com now its AI.
5. Hype-driven adoption:
6. A lot of companies are bolting AI onto products as a marketing move, not because it solves a real problem. AI-powered toothbrush syndrome, basically.
7. Infrastructure bottlenecks:
8. AI compute costs (chips, data centers, energy) are enormous. The economics dont scale well for most use cases yet, especially outside big tech.

Reasons It Might Not Be a Bubble

1. Genuine utility:
2. Unlike many past tech bubbles, AI is already creating measurable productivity gains in coding, content generation, design, and data analysis.
3. Platform shift potential:
4. If generative AI becomes as foundational as the internet or mobile computing, then current investments could be early infrastructure spending rather than irrational exuberance.
5. Rapid improvement curve:
6. The technologys rate of progressespecially in multimodal models, reasoning, and automationis unusually steep. Some argue were just at the early iPhone stage of AI.
7. Big-tech sustainability:
8. The leading players (Nvidia, Microsoft, Google, Amazon) have enough real revenue and cash flow to sustain massive R&D, unlike speculative dot-coms.

My Take
Were in a mini-bubble phase within a long-term revolution.
In other words:

• Short-term overinvestment and hype? Definitely.
• Long-term transformative impact? Almost certainly.

When the hype cools off, weaker startups will collapse, but the core AI ecosystem (chips, data, foundational models, enterprise tools) will stay and become as integral as cloud computing did after the dot-com crash.

I think it's worth pointing out that when people talk about "A.I." these days, they are usually referring to a specific type of AI called Large Language Models. The current AI bubble is pretty much all LLM based.

AI isn't going anywhere, and I think it's safe to say that it will have a huge, world-changing impact for humanity. However, when people look back 100 years from now, it may be that LLMs turned out to be only a small, relatively niche part of the overall AI industry.

Now? It always has been.

Problem?