Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Google boss says AI investment boom has 'elements of irrationality'

bbc.com

Post reply on HN
Print view View original

51–60 of 752 posts

Re: Google boss says AI investment boom has 'elements of irrationality'

#52

Post by jmalicki »

lesuorac wrote: post #49

> He told the BBC that the company owns what he called a “full stack” of technologies, from chips to YouTube data to models and frontier science research. This integrated approach, he suggested, would help the company weather any market turbulence better than competitors. I guess but is it better for an investor to own 2 shares of Google or 1 share of OpenAI and 1 share of TSMC? Like I have no doubt that being vertic…

There may be firm specific risk etc., but there is also a concept of double marginalization, where monopolies that exist across the vertical layers of a production chain will be less efficient than a single monopoly, because you only get a single layer of dead weight loss rather than multiple.

https://en.wikipedia.org/wiki/Double_marginalization?wprov=s...

Re: Google boss says AI investment boom has 'elements of irrationality'

#54

Post by burnte »

ghostpepper wrote: post #51

Does anyone really think it’s “if” and not “when” ?

Agreed, it's when. They're hoping to stave it off or maybe stretch out the pop into a correction by all hedging together with all these incestuous deals, but you can't hold back the tide. They debuted this tech way too early, promised way too much, and now the market is wary about buying AI products until more noise settles out of the system.

Re: Google boss says AI investment boom has 'elements of irrationality'

#55

Post by nickff »

burnte wrote: post #53

And there we have the reason for all of these interdependent deals between all these firms, they're all hedging with each other they can keep this set of plates spinning. They can't, not firever. Bubbles pop.

How is what they’re doing a ‘hedge’? It seems more like alternative financing, or keiretsu.

Re: Google boss says AI investment boom has 'elements of irrationality'

#56

Post by robotnikman »

Ekaros wrote: post #39
throwawayffffas wrote: post #36

Earlier quoted context omitted.

I think that's the impression you get if you focus on Microsoft as a OS vendor. It's not that anymore, that's why their OS sucks for many years now. Their main business is b2b, cloud services, and azure. I think they are pretty safe from OpenAI. Plus they have invested big in OpenAI as well.

Windows is hard to replace in large organizations. Is there actually any real AI competitors in the stack? Well Google, maybe. The whole Windows+Office+AD+Exchange and now Azure stack is unlikely to go any time soon. However badly they screw it up.

True. Basically any medium to large scale business is reliant on Windows/Office/AD. While there are open source alternatives to Windows/Office, I can't think of a good open source alternative to AD/Group Policy/etc

Re: Google boss says AI investment boom has 'elements of irrationality'

#58

Post by ares623 »

burnte wrote: post #54
ghostpepper wrote: post #51

Does anyone really think it’s “if” and not “when” ?

Agreed, it's when. They're hoping to stave it off or maybe stretch out the pop into a correction by all hedging together with all these incestuous deals, but you can't hold back the tide. They debuted this tech way too early, promised way too much, and now the market is wary about buying AI products until more noise settles out of the system.

It’s going to pop as soon as they get confirmation the govt will bail them out. Until then they’re going to give it their all to keep it growing.

Re: Google boss says AI investment boom has 'elements of irrationality'

#59

Post by viccis »

Very cool and healthy for the CEO of a company investing massive amounts into a given technology to casually refer to it as a "bubble" at the same time. I guess he softens the statement a bit by calling it "an AI bubble" instead of the "the AI bubble", but it's still interesting to see everyone involved in this economic mess start to acknowledge it.
Post reply on HN