AI investment has helped keep markets and economic growth ticking along, but the IMF fears the boom could quickly turn to bust if the promised profits fail to materialize. With tech giants borrowing billions and investors piling into the same handful of companies, a selloff could leave more than just Silicon Valley nursing a hangover.
It won’t. Bubbles don’t burst.
let it pop https://www.youtube.com/watch?v=3zUUtf7gOe8
If so, the technobros did this. The technobros should receive most of the consequences. There should be dire consequences but we all know who will receive most of that. The system is broken.
in a sane world. in this world, where the system is working as intended, tech bros will reap rewards at our expense. hopefully the working class response will be of a scale commensurate with the scale of the injustice.
I’ll stand with you! ✊
Sorry. The techbros will get bailouts. Its the pensioners that will starve.
It’s the pensioners who made most of the money from NVDA and MU price graphs going vertical anyway. Friendly reminder that people over 55 own 73% of the US, much of it via index fund based retirement funds and such. Isolating just the boomers, they own 8x more wealth than billionaires (though there’s a fair bit of overlap of course, with a lot of billionaires themselves being boomers). Total over 50% of the US (including everything from cash to real estate to stocks) is owned JUST by the boomer generation.
Which is not to say the techbros aren’t the problem, but in absolute dollar amounts, they’re not actually the biggest beneficiaries - only per person did they make more money off this. Not as a class.
*Techbros
Techno-bros raving at the club
Remembet that they don’t have the money to do it. It’s also investors to blame.
Oh absolutely, investors doing no due diligence on their part is complicity.
That’s why the techbros made sure to buy the politicians.
This will be like 208-2012 but this time around it’s the techbros businesses which will be deemed “Too big to fail” and get saved with public money and the central bank printing money to buy their bonds, whilst everybody else pays for it with Austerity.
don’t stop, i’m so close
Let’s hope so!
“Greedy shitbag tech bros pushed it. Greedy shitbag investors threw every penny at it. So whoops, the whole world is held hostage. Sorry fuckos, you, John and Jane public, are going to pay to save the global economy. Greedy fucksticks aren’t allowed to lose.”
…can’t wait.
If profits are what will make it fail. It is going to fail. They need everyone to subscribe to their premium tiers at this point.
API costs start to approach the operating costs of these systems. The ultra premium subscription tiers still lose money.
Tech has high market value because there’s the potential for growth, and the cost to grow is minimal after the initial startup costs. Adding a subscriber to a newspaper costs, say $0.20 for each subscriber; adding a Facebook user has a cost approaching zero as the user count grows. The problem with GenAI is that the inference cost grows linearly with usage, and the constant creation of new models means the training costs are also not recouped.
The debt the datacenter builders are taking on are being traded as junk with high interest rates already, and they’re going higher. They’ll never generate the income that the rates demand much less recoup the cost of building.
The problem with GenAI is that the inference cost grows linearly with usage, and the constant creation of new models means the training costs are also not recouped.
probably even slightly more than linear at this point as they use up so much electricity and other resources that it becomes more and more expensive to serve more users. User 1 is easy, that’s just the existing data center. User 1 million, well, you need a new datacenter and drive up hardware prices, but it’s fine. User 10 million, you need to build/rent gas power plants, figure out where to get water from, RAM and everything costs 5 times as much as it used to, bribe local politicians to build despite backlash etc.
Wouldn’t matter. The cost to execute the tokens is greater than the subscription. It’s all VC funds that they’re burning every day. It’s inevitable to fail unless they can convince every day users to pay $2k a month
I’d pay them 2k a month for every month they pay me 10k for. Ofc I need to be paid first because otherwise I won’t have the money to pay them and still comfortably live.
No that’s kinda the point. If AI charged for actual cost, no one could afford it. It’s all subsidized now. Basically a money shredder
I know, I was making fun of them by suggesting a “give me your money and then I’ll give you some of my money”-circlejerk because that can never be sustainable in the long run.
The economy as it stands is a house of cards built on promises no one keeps but enough people believe.
I have never claimed to be an expert on anything but the moment you let the fate of something rest on the guess of how much it will cost if everything goes the way you think it will, when the other half of the room hope it goes the other way seems mad.
That would be awful, we must save them and give all our money to their wonderful project. We will sacrifice ourselves and live in the woods while they improve their drunk chatbot that should cure cancer any minute now.
/s mandatory
Live in the woods?! Are you crazy, you need to work so you can pay taxes that will become their bailout!
You can go
starvelive in the woods when AI can do your job after stealing your data.
If the thing we call an economy no longer becomes sustainable, maybe going to QUD mechanics of trade or going back to bartering might become a thing.
QUD
Live and drink, friend!
Good
Could???
Find out by tuning into the next season of The Economy!
Good.
Buffett Index: total stock valuation vs. GDP
1928: 130%
2007: 130%
2025: 220%
Now guess where most of that stock growth and GDP came from? I’ll give ya three guesses, but you’re only going to need one.
Propane and propane accessories?
unexpectedly good churro sales?
The Legend of the Whopperito™?
I can’t believe it’s not salsa?
