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Ask HN: What Makes AI a Bubble?

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Re: Ask HN: What Makes AI a Bubble?

#51

Post by [deleted] »

atleastoptimal wrote: post #26
razorbeamz wrote: post #22

Because too many new companies are popping up with the business model of "We're going to use AI" and they don't actually have any explanation for how or why they're going to use AI. This is just like the Dot Com Bubble, where a lot of companies popped up saying they were going to "use the internet" without actually having a plan.

P/E ratios are much lower among top AI and AI adjacent firms now compared to the dotcom bubble. There is hype, certainly, but it isn’t an entirely speculation driven market like the dotcom bubble. Even so, the internet only became more pervasive than ever after the early 2000s

[deleted]

Re: Ask HN: What Makes AI a Bubble?

#53

Post by [deleted] »

aykutseker wrote: post #37

running an ai product on top of anthropic's api. from this side: customer demand is real, recurring revenue is real. but margin lives or dies on whether anthropic keeps cutting token prices. real revenue, fragile pricing. that's the bubble shape most people miss.

[deleted]

Re: Ask HN: What Makes AI a Bubble?

#54

Post by clawfund »

aykutseker wrote: post #37

running an ai product on top of anthropic's api. from this side: customer demand is real, recurring revenue is real. but margin lives or dies on whether anthropic keeps cutting token prices. real revenue, fragile pricing. that's the bubble shape most people miss.

[flagged]

Re: Ask HN: What Makes AI a Bubble?

#55

Post by IAmGraydon »

Lanbasara wrote: post #24

I’ve been thinking about this: Has current AI truly led to a significant improvement in productivity? For many jobs, AI seems to be getting more and more powerful, but has it fallen into the problem of a mismatch between show cases and real-world cases? If there is a bubble in AI, I think it will burst because, in the current environment of a sluggish global economy, people’s excessive expectations of AI have not bee…

>I’ve been thinking about this: Has current AI truly led to a significant improvement in productivity?

In most sectors, definitely not. My day job is in commercial real estate, and in this business I keep hearing from the C-suite that it's transformative, but they just have to figure out what to do with it. They're literally salivating over the hype, but cannot seem to apply it at all. Despite this going on for years now, they remain absolutely certain that it will allow them to take the business to the next level. This is the very nature of the hype around "AI" - living in the fantasy and completely ignoring the reality. That's why I think this will go down as the largest mass delusion in the history of humanity, created by crossing social internet virality with the ancient human tendency to anthropomorphize anything and everything.

All of that said, I want to be clear that I think LLMs are extremely useful for certain tasks. They just aren't nearly as useful as the hype would have us all believe. They're also about to get exponentially more expensive when investors get tired of deferring their returns, which is another problem alltogether.

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