Say farewell to the AI bubble, and get ready for the crash

#1

Post by taimurkazmi » Wed, Aug 20, 2025, 6:12 PM UTC

Say farewell to the AI bubble, and get ready for the crash
latimes.com

Re: Say farewell to the AI bubble, and get ready for the crash

#2

Post by mitchbob » Wed, Aug 20, 2025, 6:24 PM UTC

https://archive.ph/2025.08.20-113134/https://www.latimes.com...

Re: Say farewell to the AI bubble, and get ready for the crash

#3

Post by jqpabc123 » Wed, Aug 20, 2025, 6:27 PM UTC

After the crash, tech "industry leaders" will struggle to explain why/how they were conned into believing that intelligence was a simple database function with some probability and statistics sprinkled on top.

Re: Say farewell to the AI bubble, and get ready for the crash

#4

Post by pera » Wed, Aug 20, 2025, 6:32 PM UTC

I just don't get why did Altman had to hype this release so much, what was the plan?

Also, what was the deal with all those mysterious Star Wars pictures?

Re: Say farewell to the AI bubble, and get ready for the crash

#5

Post by Zealotux » Wed, Aug 20, 2025, 6:33 PM UTC

jqpabc123 wrote: post #3

After the crash, tech "industry leaders" will struggle to explain why/how they were conned into believing that intelligence was a simple database function with some probability and statistics sprinkled on top.

I remain convinced the whole hype was a way to overfire after the big overhire.

Re: Say farewell to the AI bubble, and get ready for the crash

#6

Post by egypturnash » Wed, Aug 20, 2025, 6:35 PM UTC

I sure am looking forwards to what will happen to my power bill once Facebook decides to default on its share of the bill for the massive power plants Entergy is building solely to power the huge-ass data center FB's building in northern Louisiana. https://www.knoe.com/2025/08/19/entergy-power-plant-meta-dat...

Re: Say farewell to the AI bubble, and get ready for the crash

#7

Post by andrewstuart » Wed, Aug 20, 2025, 6:36 PM UTC

Meh.

Crashes come when there was no real business value.

I use AI all day and I’m sure I’m not the only one.

Re: Say farewell to the AI bubble, and get ready for the crash

#8

Post by bgwalter » Wed, Aug 20, 2025, 6:38 PM UTC

pera wrote: post #4

I just don't get why did Altman had to hype this release so much, what was the plan? Also, what was the deal with all those mysterious Star Wars pictures?

Initially politicians were responsive. In Feb. 2024 he sought trillions of investment to ramp up "AI" [1]. Then he got the White House announcement with Trump and Softbank for the $500 billion Stargate deal. The project has flopped, only one data center will be built.

So I assume he thought hype would work again, but people are beginning to scrutinize the real capabilities of "AI".

[1] https://www.wsj.com/tech/ai/sam-altman-seeks-trillions-of-do...

Re: Say farewell to the AI bubble, and get ready for the crash

#9

Post by webdevver » Wed, Aug 20, 2025, 6:39 PM UTC

nothing ever happens

Re: Say farewell to the AI bubble, and get ready for the crash

#10

Post by kg » Wed, Aug 20, 2025, 6:41 PM UTC

andrewstuart wrote: post #7

Meh. Crashes come when there was no real business value. I use AI all day and I’m sure I’m not the only one.

There was a lot of business value during the dotcom boom and we still had a crash. The question is how many AI companies have strong fundamentals and will survive, vs the ones that have weak fundamentals and will die if/when the investment money dries up.