Sounds like something an extortionist would say in a movie. “We’re all dirty here!”
Yeah, exactly: it is an implied threat: "If I go, I am taking you down with me"
Google boss says AI investment boom has 'elements of irrationality'
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Re: Google boss says AI investment boom has 'elements of irrationality'
#62Does 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.
They got enough slush money to make this go on for a couple of years.
I am shocked at the part they know it is a bubble and they are doing nothing to amortize it. Which means they expect the government to step in and save their butts.
... Well, not that shocked.
Re: Google boss says AI investment boom has 'elements of irrationality'
#63Google, Meta, Microsoft, and Amazon will get through easily. They don't have excessive debt. They can afford to lose their investments into AI. Their valuations will take a hit. Nvidia will lose revenue and profits, stock will go down by 60% or more, but it will also survive. Oracle will likely fail. It funded its AI pivot with debt. The Debt-to-Revenue ratio is 1.77, the Debt-to-Equity ratio D/E is 520, and it has a…
> Google, Meta, Microsoft, and Amazon will get through easily. They don't have excessive debt. They can afford to lose their investments into AI.
Survive, yes. I don't think anybody ever questioned this.
I wonder if they will be able to remain as "growth stocks", however. These companies are allergic to be seen as nature companies, with more modest growth profiles, share profits, etc.
Re: Google boss says AI investment boom has 'elements of irrationality'
#64Sounds like something an extortionist would say in a movie. “We’re all dirty here!”
[dead]
Re: Google boss says AI investment boom has 'elements of irrationality'
#65Sounds like something an extortionist would say in a movie. “We’re all dirty here!”
I mean this commonly happens in business/economies. Businesses that are dirty can make more money, at least temporarily out competing those around them. If they play it right they can drive their good competitors out of business or buy them up. Moreso, the crash at the end of a bubble will just as likely drive the good businesses out as the bad.
Re: Google boss says AI investment boom has 'elements of irrationality'
#66Sounds like something an extortionist would say in a movie. “We’re all dirty here!”
"But everybody's doing it!"
Re: Google boss says AI investment boom has 'elements of irrationality'
#67> 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…
OpenAI going poof would have a negative impact on TSMC demand (revenue), right?
Re: Google boss says AI investment boom has 'elements of irrationality'
#68Tons of companies survived the dot com bubble pop. Corrections are when the market does some sorting.
Re: Google boss says AI investment boom has 'elements of irrationality'
#69I think it will pop but not in the way everyone thinks it will pop. There's plenty that's not going to go away / anywhere, but I'm sure lots of startups will fail and close their doors.
Re: Google boss says AI investment boom has 'elements of irrationality'
#70Does anyone really think it’s “if” and not “when” ?
Sort of? My thoughts are that there's something of an AI arms race and the US doesn't want to lose that race to another country... so if the AI bubble pops too fiercely, there may likely be some form of intervention. And any time the government intervenes, all bets are off the table. Who knows what they will do and what the impact will be.