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Is the A.I. Boom Turning Into an A.I. Bubble?

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Re: Is the A.I. Boom Turning Into an A.I. Bubble?

#4

Post by ch4s3 »

antithesizer wrote: post #3

I remember reading this two years ago. And one year ago, too.

Yeah, I mean there's a chance they're wrong and some chance they'll eventually be right. At this point it's clearly impossible to say for sure what the outcome might be. There were plenty of people in 2005 saying there was a housing bubble in the making and plenty of evidence that they were wrong. Were they right but too early? Were they wrong on fundamentals but happened to have guessed right? We could be seeing something similar here where the nay sayers are right for the wrong reasons, or they're simply haters whose desires may align with the eventual outcomes. Or not.

Re: Is the A.I. Boom Turning Into an A.I. Bubble?

#6

Post by mumbisChungo »

No matter how right the AI crowd is, elements of it are/will be a bubble.

No matter how right the bubble crowd is, the market becoming irrationally exuberant for a brief period of time does not invalidate the technology or the rapid change we'll see as a result of it.

Re: Is the A.I. Boom Turning Into an A.I. Bubble?

#7

Post by kelseyfrog »

Of course it is.

Investors can't set realistic expectations for AI, so an ocean of capital is chasing a dream. When the rent comes due, the quick will cut and run. The rest will turn to extraction. If you want a front-row seat to the clusterfuck that is aligning LLMs with product placement or selling users' conversations to advertisers, you're in luck. Grab some popcorn.

Re: Is the A.I. Boom Turning Into an A.I. Bubble?

#8

Post by ath3nd »

Some articles arguing that's already the case (and why):

- https://www.wheresyoured.at/ai-is-a-money-trap/

- https://www.wheresyoured.at/anthropic-and-openai-have-begun-...

For me, the only consolation is things seem to be moving fast nowadays so the inevitable collapse must be close. See what happened to Github's CEO, it took 1 week from cocky to fired, hopefully the same happens to sama, Zuck, Musk and all the snake oil salesmen in this space:

- 2-nd of Aug 2025 Github CEO delivers stark message to developers: "Embrace AI or get out of the industry" https://www.businessinsider.com/github-ceo-developers-embrac...

- 11-th of Aug 2025 Github CEO resigns https://www.theverge.com/news/757461/microsoft-github-thomas...

Hopefully the amount of instability in the space and the many signals of stagnation (e.g OpenAI's valuation divorced from reality, the GPT-5 release, Claude changing their limits, Meta spending millions on single hires) will indicate to people paying attention that it's a very volatile and bubbl-y space to invest in.

Sources:

https://www.theregister.com/2025/03/26/microsoft_ai_apocalyp...

https://nypost.com/2025/08/01/business/meta-pays-250m-to-lur...

https://techcrunch.com/2025/07/28/anthropic-unveils-new-rate...

https://arstechnica.com/information-technology/2025/08/the-g...

https://fortune.com/2025/08/08/openais-reported-500-billion-...

https://finance.yahoo.com/news/beneath-ai-bubble-economy-loo...

I personally can't wait for the bubble to burst so I can "told you so" to all the enthusiasts/fanboys.

Re: Is the A.I. Boom Turning Into an A.I. Bubble?

#9

Post by wongarsu »

ch4s3 wrote: post #4
antithesizer wrote: post #3

I remember reading this two years ago. And one year ago, too.

Yeah, I mean there's a chance they're wrong and some chance they'll eventually be right. At this point it's clearly impossible to say for sure what the outcome might be. There were plenty of people in 2005 saying there was a housing bubble in the making and plenty of evidence that they were wrong. Were they right but too early? Were they wrong on fundamentals but happened to have guessed right? We could be seeing som…

There were also people who said in 1999 that there was an unsustainable bubble of "internet" businesses. And they were right. The bubble burst, and the internet still went on to change the world

No doubt there's a lot of stuff right now that's completely overvalued, and companies that try to do things that the technology just isn't ready for yet. Those will eventually be culled, either one by one or all at once in a big burst. But for the way AI changes industries and our lifes that will only be a speed bump

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