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

Post by m463 » Wed, Nov 19, 2025, 4:00 AM UTC

Ancapistani wrote: post #335

willis936 wrote: post #326

Forget the talk about bubbles and corrections. Can someone explain to me the rationale of investing in a product, marketing it, seeing that it drives consumers away from your product and erodes trust, and then you continue to invest at an accelerating rate? Good business would have driven us very far away from this point years ago. This is very deep in the "because we can" territory. It's not FOMO.

> Can someone explain to me the rationale of investing in a product, marketing it, seeing that it drives consumers away from your product and erodes trust, and then you continue to invest at an accelerating rate? Sure! Google began investing heavily in AI (LLMs, actually) to catch up to the other frontier labs, which had already produced a product that was going to eviscerate Google Search (and therefore, Google ad r…

Post by raincole » Wed, Nov 19, 2025, 4:09 AM UTC

willis936 wrote: post #326

Forget the talk about bubbles and corrections. Can someone explain to me the rationale of investing in a product, marketing it, seeing that it drives consumers away from your product and erodes trust, and then you continue to invest at an accelerating rate? Good business would have driven us very far away from this point years ago. This is very deep in the "because we can" territory. It's not FOMO.

Post by raincole » Wed, Nov 19, 2025, 4:18 AM UTC

amypetrik8 wrote: post #371

zeroonetwothree wrote: post #312

Earlier quoted context omitted.

1974 median individual income was $28k 2024 median individual income was $45k Over 50 years that’s a decent amount of growth. Obviously it could be better but it’s not nothing. Source: https://fred.stlouisfed.org/series/MEPAINUSA672N

Sure but pretty sure with your 1974 28k you could buy a nice house, whereas with your 2024 (equivalent) 45k you can buy an OK car, not a house

Post by balder1991 » Wed, Nov 19, 2025, 4:40 AM UTC

techblueberry wrote: post #88

ghostpepper wrote: post #51

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

I've been trying to grok this idea of - when does a bubble pop. Like in theory if everyone knows it's a bubble, that should cause it to pop, because people should be making their way to the exists, playing music chairs to get their money out early. But as I try to sort of narrative the ideas behind bubbles and bursts, one thing I realize, is that I think in order for a bubble to burst, people essentially have to want…

Post by balder1991 » Wed, Nov 19, 2025, 4:53 AM UTC

rockemsockem wrote: post #359

stingraycharles wrote: post #349

Earlier quoted context omitted.

I think it’s because a lot of people feel like AI is being pushed from the top a lot with all kinds of spectacular claims / expectations, while it’s actually still difficult to apply to a lot of problems. The AI bubble bursting would be somewhat of an “I told you so!” moment for a lot of people. And there’s also a large group that’s genuinely afraid to lose their job because of it, so for that group it’s very much un…

I do agree that there seems to be a bubble, imo it's largely in the application space with the likes of cursor being valued at $23B+, but I don't see GPU purchases going down anytime soon and I don't even see usage going down. If these overhyped apps fail then it seems like something else will take their place. The power that LLMs provide is just too promising. It seems like those predicting things like a global econ…