No bailout for AI
Let’s get ahead of this. Fraudsters should go to prison.
If this bubble bursts while Trump is still in office, then they will absolutely bail them out. Fraud is the common denominator for all Trump’s actions.
dems would bail em out too, money printer Powell was in power under Bush and Obama…that’s no accident.
fact is the entire US economy is predicated on the idea our financial markets remain unregulated, so our country can act as easy exit liquidity for the rest of the world. That’s been the underpinning of our entire economy since atleast the end of WW2
Powell was appointed by Trump 1.0
Powell was appointed as one of the Federal Reserve governors under Obama, I think that’s what IronBird is referring to.
Powell was chosen by Obama too, might have misremembered Bush.
I’m not sure government can. AI isn’t a profitable company with a product that people want which has a short-term cash flow problem, AI is a money pit that will just burn up as much cash as you can pour in.
If they hand AI firms a trillion dollars, they’ll be back for another trillion next year.
Yeah. Automotive, insurance, and banking were industries when they collapsed in 08. They kept making bad calls (and automotive has continued to do so immediately after the government stopped forcing them not to), but the industries were bailed out because the consequences of not having them would be disastrous to the US economy.
Unfortunately I do think a lot of the government feels not having AI dominance would be disastrous for the US economy so it could easily become a fight.
Moreover he can’t have a losing economy now can he.
Take away the false number from the bubble and it already is.
To be clear, they’re not fraudsters, exactly. They’re hype men, and that’s what stocks have been about for a while now. Who can hype their stock up the most.
And AI has been hyped, globally, more than any other stock in the history of the world so far.
The crash will happen, but it’s not fraud. Not yet. They’re playing a dangerous game of stock buybacks that led to the 2007-08 recession of the car companies originally.
It will happen here again. Stock buybacks sound great, and they’re legal, but using them like the major 5 investors into AI have been, while again isn’t illegal, is extremely risky for the company as the majority of their shares are now held by themselves, instead of getting you know, outside investors like the whole of the stock market is supposed to work.
It means there’s no leverage and no diversification, so when the bubble pops, these companies that should have more on their balance sheets than just AI (like Microsoft, NVidia, and Oracle), will crater due to one part of their investment portfolio instead of just having a “setback”.
This could literally end major tech companies in the US overnight without a Government bailout, or socializing their companies with government takeovers (won’t happen in this admin without it going into trump’s pockets though).
Hype isn’t fraud in itself, but I’m convinced there’s also massive fraud. I’m not a financial law expert but there must be safeguards against scams like this. It will be apparent once the bubble pops.
Leuke naam trouwens ;)
hah, bedankt :)
Yeah, there’s probably some fraud going on for sure, just nothing that anyone can prove easily yet. But you’re not wrong, it’s there, same with the crypto bro stuff.
The problem is that the safeguards keep getting eroded. Companies really want to be allowed to make the gambles that tank the economy and so they push for them to be removed.
No doubt there is massive fraud. I just saw the article about the AI note-taking app startup guy who was jumping on calls himself and taking notes manually, providing those as the results of his “app”. Somehow, I feel even he will get away with it.
Word is that the smart money is already on its way out. These guys sound like a bunch of bag-holders to me. (Edit: spelling)
I believe at this point the sharks already pulled out.
Of course. Nothing can be more damaging on Wall Street than a rumor in the right places.
The right [word] in the wrong place can make all the difference in the world.
They know it is a bubble, but they ate afraid other people could notice it.
> invest in company
> someone else says “your investment is worthless”
> angry noises
Tbf seems to be common across all hyped assets, not just hyped AI stocks.
invest in
companygoldmlmtimesharehousingcryptoAIsomeone says “your investment is worthless”
angry noises
AI isn’t just a new distribution mechanism or a new interface. It is fundamentally a set of capabilities that can upend industries.
Except, that’s exactly what it is, just a new interface of interacting with the computer and one that doesn’t even always work as expected.
I bet you just need another trillion and one more year to unlock those “new capabilities” that will “upend industries”. Fucking jokers. I hope they lose all their money and die poor.
Just one more trillion, bro. That’s all we need.
Just another trillion, bro. We swear that’s it.
- Invest all money in “AI”
- ???
- AGI happens, yielding massive profit!
Hardly ever works as expected
Well duh. They want to believe they’ve found the magical off ramp from the “you can’t have infinite growth in a finite world” problem and are willing to ignore all signs that point to the only people who want AI are those selling it.
especially something that doesnt generate any usefulness outside of slop.
That’s not going to stop people from sending in their photos and videos to get “Ghiblified”
TIL that, according to Wiktionary, Ghiblified is a word.
Nah, but charging them would.
Ai only gets a pass until we’re actually charged for it. It’s a fun toy to most people, would they pay for it? Nah lol. I’d pay to get rid of it.
And that’s already begun.
The generators are now starting to shift over to paid tokens, which isn’t bringing in the profits they’d hoped.
Also coincidentally all software now incorporating ai “tools” are increasing in subscription cost! And no you don’t get to choose a non-ai option that keeps the cost where it is now!
They have to force this shit and charge extra for it to make it look like it’s making money.
Any asshole that doesn’t go bankrupt from this in the end should be angry mobbed out of their homes.
I’ve heard that OpenAI loses money even on their most expensive plans, which are 400$/month.
Yeah they seem to make money entirely from investments and truly how long can investors keep pumping money into something without getting any return? Eventually something has gotta give.
But of course you don’t need to actually be smart to have seemingly endless amounts of money so sadly it could take a while longer than we’d like.
To be fair some slop is very useful, but the expectations are too high.
It’s all very handy if your aim is to scam idiots and old people!
How else will I have my financial oroboros to prop up the economy
Just one more datacenter! This time we’ll make it! Trust me, bro!
