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

latimes.com

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

#41

Post by exasperaited »

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.

Crashes, rather, must come when there is an enormous, industry-wide mismatch between perceived value (e.g. assessed in terms of expected return on investment) and actual value in terms of real return on investment within the expected period.

Evidence is emerging that the former could be twenty times the latter, or more.

The value you perceive has been much, much more expensive than investors would like, I suspect.

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

#42

Post by selimthegrim »

egypturnash wrote: post #6

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...

I was just in the Louisiana public service commission meeting where Entergy told the regulators that Meta Platforms was worth 2 trillion and they got some opinion from a New York law firm that their word was good so YOLO. Passed 4-1. The exact words were “Meta Platforms is worth more than the five biggest banks combined” (implying no point in asking a bank for a loan guarantee or backstop)

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

#43

Post by toomuchtodo »

Zealotux wrote: post #5
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.

They're still aggressively outsourcing to India, the Philippines, and LATAM under cover of AI to tighten the screws on labor costs. Domestic hiring that drags on is to pull in new employees at current lower market wages that will be sticky for some time.

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

#44

Post by r2_pilot »

aydyn wrote: post #28

A comment in a previous thread stuck with me said something like "AI is successful because nothing else interesting is happening". That rings true and I suspect the bubble won't burst until something else comes along to steal the show.

Meanwhile Claude is helping me build a robot and is also writing the code that runs its subsystems but okay. Sure, I could do it all myself(maybe?) but not nearly as quickly or in the interstitial moments of life.

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

#45

Post by TMWNN »

Internet traffic kept growing throughout the dotcom bubble. That valuations got ahead of themselves didn't mean that there wasn't something real driving the hype.

Even if AI valuations have a sharp correction, there will still be a great need—and demand—for compute.

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

#46

Post by TMWNN »

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.

Internet traffic kept growing throughout the dotcom bubble. That valuations got ahead of themselves didn't mean that there wasn't something real driving the hype.

Even if AI valuations have a sharp correction, there will still be a great need—and demand—for compute.

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

#47

Post by sapphicsnail »

NitpickLawyer wrote: post #23

What a bad article. I mean how biased can you be, to put the first big quote from someone who wrote a book called "The AI con". Come on! This feels like the "deepseek r1 is the death of nvda" of 6 months ago. Someone is making a play, and whoever wrote this article fell for it. gpt5 has always been about making a "collection of models" work together and not about model++. This was announced what, a year ago? And they…

> What a bad article. I mean how biased can you be, to put the first big quote from someone who wrote a book called "The AI con".

It's an op-ed. It's supposed to be biased.

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

#49

Post by Workaccount2 »

NitpickLawyer wrote: post #23

What a bad article. I mean how biased can you be, to put the first big quote from someone who wrote a book called "The AI con". Come on! This feels like the "deepseek r1 is the death of nvda" of 6 months ago. Someone is making a play, and whoever wrote this article fell for it. gpt5 has always been about making a "collection of models" work together and not about model++. This was announced what, a year ago? And they…

Media orgs (well journalists really) are especially hostile towards AI and it's easy to see understand why.

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

#50

Post by athenot »

NitpickLawyer wrote: post #23

What a bad article. I mean how biased can you be, to put the first big quote from someone who wrote a book called "The AI con". Come on! This feels like the "deepseek r1 is the death of nvda" of 6 months ago. Someone is making a play, and whoever wrote this article fell for it. gpt5 has always been about making a "collection of models" work together and not about model++. This was announced what, a year ago? And they…

This is an Opinion piece, not a news article. The distinction between the two seems to be lost on most people nowadays.

One way I leverage opinion pieces for things with which I disagree, is to treat it as a sort of "devil's advocate". What argument are they making? Is that really the strongest one they have? Does my understanding of that domain effectively counter those arguments? etc.

In this case, the main argumentation is on how ChatGPT is not the miraculous genie it was hyped up to be. That's a fair statement, but to extrapolate that into "AI bubble is crashing now" is overlooking a host of other facts about its usefulness. Yes we'll eventually hit the through of disillusionment but I don't think we're there yet.

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