Search results for tag #aibubble
This is actually a very concise and accessible summary of why #AI can't replace developers.
The only part I disagree with is the comparison of programming with AI to carpenters using electric drills, since I doubt power tools would be as popular if they delivered probabilistic results.
Well, some coworkers who have spent two years humoring #AIBoosters in the company have now realized that there is no way to placate extremists.
@adr Granted, just by the hardware parts they'd loose out if they were to sell at €749 (you can thank the #AIbubble as well as #RAM & #NAND - #Tripol #Cartel and lack of #regulation for that).
- OFC #retailers also want their margin, and unless one's in a position like #Apple, the #retail margin will be 10-20% depending on the market, whether it's a #online or in-presence stores or whatever. And that is already a low margin.
Everyone who expects this a €499 box is fucking dellusional at this point, because with the current memory prices and expected developments people would just buy truckloads of them to harvest the #GabeCube for it's #RAM, #SSD & #VRAM and scrap the rest.
- Cuz already we're seeing the #RAM sticks that would be in it to cost €250+ and unlike #Sony or #Microsoft this isn't a #SBC they can sell at a loss unless they want to break their advertising promises and risk expensive #ClassActionLawsuits in #SueHappy #USA and extremely high return rates in the #EU respectably.
If the #GabeCube is competitive priced if not cheaper than equivalent #Desktops and #Servers then we'd see every #business with "strategic procurement" just buy literal truckloads expecting #DRAM & #Flash prices to not come down this upgrade cycle (aka. within 5 years) but still needing some machines to work with as the heightened prices - like the #ChipShortage before - will strangulate the #UsedMarket.
- I kid you not, we'd rather see #scalpers and #businesses equipping employees with cash, credit cards and high-value gift cards just to pick shelves clean (just like it happens) with #GPUs because that shit is now hotter on the black market than "research chemicals" because it has less risk and higher payouts.
So do expect the #Gabecube to cost way more than €749 + VAT and closer to €999 than €749 since #Poland has a low #VAT / #GST rate and is a 'low income' place (compared to the EU-Average)...
- The €749 would've been more realistic by the time it was announced but the €499 never were for any non-closed system subsidized harder than the #PS3.
@dalfen the #US #economy is based upon unsustainable #ConsumerSpending and widespread #debt.
- It's the opposite to #Germany and espechally #Greece, with the latter one having >85% homeownership among households and the former one being known for extreme due diligence and basically no consumer credit being offered without hard collateral.
Only #Petrodollar hegemony (as violently enforced in #Iraq, #Iran & #Venezuela) and "#AIbubble #scam economy" prevent the #USD from being toilet-paper tier #currency next to #KPW…
With the US acting more and more like a rogue state, it's time to impose your own personal sanctions.
Bite the bullet. Stop using Microsoft, Apple, Amazon, Google, Meta and ChatGPT - where you can. Hit them where it hurts and burst that AI bubble.
Most of the barriers come down to inconvenience.
#LeaveBigTech #Boycott #BoycottAmerica #US #BigTech #Microsoft #Apple #Google #Meta #ChatGPT #AIBubble
Hey Guys, gals, people and pets, Satya Nadella is getting tired of people calling AI Slop output AI Slop. If everyone can stop that's be great as it is upsetting Microslops share holders.
Don't start calling Microslop Microslop or use the #microslop tag as it might burst the AI bubble and then Microslop might have to take SlopPilot out of Windows. As you know, that would be terrible.
#microslop #microsoft #copilot #sloppilot #AI #genAI #AISlop #AIBubble
Don't wish for things to get worse.
When the dot.com bubble burst we ended up with few tech monopolies.
Likewise #AIBubble bursting means we will end up with a few #AI monopolies.
Since #Microslop has the capital, they will be one of the survivors
Yeah, we all want to go #LazerEyes on those "#AI" grifters, Steve...
https://www.youtube.com/watch?v=NHO9UtvTPSA
#GamersNexus #Enshittification #AIslop #AIbubble #Bubble #ScamEconomy #AIscam #Scammers #Greed #GAFAMs #nvidia #OpenAI #Palantir #Fascism #Cyberfascism #Micron #Samsung #SKhynix
Nadella says:
“…2026 will be a pivotal year for AI. Yes, another one. But this moment feels different in a few notable ways."
All I hear is “bro just one more AI bro, bro I swear just one more AI product and it'll fix the AI bro. This time, bro, I swear. This time the AI is gonna be awesome, bro"
AI, Enshittification, Rant [SENSITIVE CONTENT]
@robinsyl +9001%
At best "#AI" is just #BigData in a different packaging, at most it's #WastefulComputing that gets curbstomped by #WolframAlpha & #CleverBot and more often than not it's #Malware that literally #DDoS'es entire businesses because the assholes than run the Trillion-Dollar #AIbubble refuse to adhere to basic #consent as standardized decades ago with robots.txt…
- At one employer I basically had to block #AWS, #Azure, #GCP, #ByteDance & their suppliers just to stop them from constantly DDoSing clients and fucking up our billing of said clients!
@robinsyl I am convinced that #Valve is gonna try to seriously support #ARM & #Linux longterm because they don't want to depend upon #amd64 / #ix86 & #Windows for survival and profit.
- I'm shure the same engineers who cooked up the #SteamFrame work hard on supporting mainstream ARM devices like the #Pi500Plus, because the more platforms #Steam can serve a decent amount of their catalog the easier it is for them to make money.
And in the end that's what they care about...
- Tho I don't put my hopes up high re: any new devices and espechally not reasonable pricing, cuz the "#AIbubble" and the #PriceFixing tripol of #RAM [Chip] manufacturers are currently busy #scalping RAM & #Flash into unobtainable amounts.
https://www.youtube.com/watch?v=9hLiwNViMak
https://www.youtube.com/watch?v=9A-eeJP0J7c
When the #SteamMachine was announced everyone with a calculator could see this is ginna be a $/€ 749,-- #GabeCube because unlike any #GameConsole they explicitly refuse to go with the "Razer & Blades- Model" and sell the device at a loss.
- At the current prediction and RAM prices everyone not deranged expects this to be a $/€ 999,99 box if Valve preordered enough RAM to have an inventory cushion at launch.
And with the current price developments I'd not be surprised if sooner or later devices get stolen just to rip the RAM & SSD out of them and distribute them second hand like weed to a coffeeshop in Amsterdam.
@fanf42 Who is going to bail out the banks? The US taxpayer. This article makes it sound like the bailouts have already started. But financial journalists, like tech journalists, seem to “go along to get along” and aren’t reporting any of this.
https://www.dcreport.org/2025/12/29/ny-fed-unlimited-cash-infusions-bank-crisis/
Oh dear. I accidentally commented on a Hacker News story in a way that was somewhat critical of vibe coding. https://news.ycombinator.com/item?id=46421599
Sorry, but there is no way to have a good outcome for the #AIBubble, because the real bubble is rich people having the deluded belief that they are better than everyone, and the rest of society going along with it, and that doesn't seem like it will change until they fail so hard that there is irrefutable proof that making a billion dollars makes your brain atrophy until you are a gibbering moron.
#Clankers? In my #BorderPatrol? #AI is more likely than you think.
https://www.404media.co/ice-contracts-company-making-bounty-hunter-ai-agents
"It's that classic tech motto: move fast and break things, except in this case you're the things. Your brain is the things."
A #FullSelfDriving #Waymo was caught driving into traffic.
This is the technology they are arresting law-abiding folks because of.
#TechnologyNews #AIBubble #AI #PublicSafety #LawEnforcement #PublicPolicy #Corruption #Education
It’s Not An AI Bubble. It’s A Black Hole
#finance #imperialism
#democracy #poverty #trump #maga #nokings #antifa #techbros #billionaires #nvidia #bigtech #stocks #market #trade #unitedstates #palantir #mastodon #education #fediverse #canada #newyork #california #openai #montreal @ledevoir @eff #gpu #uk #china @democracy @povertyandinequality #aibubble #amazon #microsoft #chatgpt #banks #datacenters #401K #mutualfunds @workersrights #LAYOFFS
@workersrights @democracy @socialmedia
The British Public were consulted over the AI Bubble, 95% of respondents rejected it.
But in the interests of "Balance", Government and Media will provide that tiny minority with equal coverage....like they don't with Trans people.
Take your 'AI' and shove it!
#AIBubble #TechBros #Technology #GenAI #Music #Artists #UKPOL #UKPOLITICS
AI power usage [SENSITIVE CONTENT]
@anthropy @noelamac@spore.social The Problemvis that the extreme buildouts for #Bubbles like "#AI" and #Shitcoin-based #Cryptocurrencies are neither #sustainable nor acceptable.
- Compared to those, your average #eMail / #Web / #VPS-hosting is extremely effcient due to their competitiveness and power being the prime cost factor.
Whereas noone I've heard of who isn't invested in the #AIbubble sees the "AI"-based #Enshittification as something else but #WastefulComputing and a net negative to the world overall.
The alarm about AI is being sounded even more clearly. https://www.thestar.com/business/opinion/your-job-is-definitely-at-risk-due-to-artificial-intelligence-but-not-for-the-reasons/article_418f53af-218e-42a1-b93e-56d661f9bf68.html?source=newsletter&utm_email=3DC1D8379F9ABCD7F13BB87715F8CED2&utm_campaign_id=sub
#aibubble #jimstanford
"I worry about NVIDIA, not because I believe there’s a massive scandal, but because so much rides on its success, and its success rides on the back of dwindling amounts of venture capital and debt, because nobody is actually making money to pay for these GPUs.
In fact, I’m not even saying it goes tits up. Hell, it might even have another good quarter or two. It really comes down to how long people are willing to be stupid and how long Jensen Huang is able to call hyperscalers at three in the morning and say “buy one billion dollars of GPUs, pig.”
No, really! I think much of the US stock market’s growth is held up by how long everybody is willing to be gaslit by Jensen Huang into believing that they need more GPUs. At this point it’s barely about AI anymore, as AI revenue — real, actual cash made from selling services run on GPUs — doesn’t even cover its own costs, let alone create the cash flow necessary to buy $70,000 GPUs thousands at a time. It’s not like any actual innovation or progress is driving this bullshit!
In any case, the markets crave a healthy NVIDIA, as so many hundreds of billions of dollars of NVIDIA stock sit in the hands of retail investors and people’s 401ks, and its endless growth has helped paper over the pallid growth of the US stock market and, by extension, the decay of the tech industry’s ability to innovate.
Once this pops — and it will pop, because there is simply not enough money to do this forever — there must be a referendum on those that chose to ignore the naked instability of this era, and the endless lies that inflated the AI bubble."
https://www.wheresyoured.at/nvidia-isnt-enron-so-what-is-it/
People concerned about the planet boiling to a point of becoming uninhabitable:
- We need circular economy!
Nvidia, helping boil the world:
- Oh, we're way ahead of you! 🫡
Alt...
A circular graph showing circular investment and money flow.
Nvidia ("Billions in AI chips"), $100B investment, OpenAI ("$300B"), Oracle ("Billions in AI chips"), back to Nvidia
Well the US version of #ai is just a n overhyped ponzi scheme, which is gonna crash, so I'd put my bets on China .
"I think it's likely that Anthropic is just as disastrous a business as OpenAI, and I'm genuinely surprised that nobody has done the simple maths here, though at this point I think we're in the era of "not thinking too hard because when you do so everything feels crazy.”
Which is why I'm about to think harder than ever!
I feel like I'm asked multiple times a day both how and when the bubble will burst, and the truth is that it could be weeks or months or another year, because so little of this is based on actual, real stuff. While our markets are supported by NVIDIA's eternal growth engine, said growth engine isn't supported by revenues or real growth or really much of anything beyond vibes. As a result, it's hard to say exactly what the catalyst might be, or indeed what the bubble bursting might look like.
Today, I'm going to sit down and give you the scenarios — the systemic shocks — that would potentially start the unravelling of this era, as well as explain what a bubble bursting might actually look like, both for private and public companies.
This is the spiritual successor to August's AI Bubble 2027, except I'm going to have a little more fun and write out a few scenarios that range from likely to possible, and try and give you an enjoyable romp through the potential apocalypses waiting for us in 2026."
https://www.wheresyoured.at/premium-the-ways-the-ai-bubble-might-burst/
@deutschewelle hoffentlich explodiert die #AIbubble bald richtig laut und #AiSlop stirbt wie #NFTs und #Shitcoins aus!
Cc: @dw_innovation
I'm not totally onboard with AI yet (it's been around for decades in one form or another) and yet, I'm totally against it either. But shit like this pisses me off because it takes the fun out of learning, building and exploration.
But soon this will hit a lot of companies who are going to have to pay higher prices for equipment for end users.
https://www.theverge.com/news/837594/crucial-ram-ssd-micron-ai
Microsoft drops AI sales targets in half after salespeople miss their quotas - Ars Technica
> Report: Microsoft declared “the era of AI agents” in May, but enterprise customers aren’t buying.
#technology #microsoft #ai #llm #bullshit #vaporware #aibubble
Our annual company meeting is tomorrow, and the #AIBubble has still not collapsed, so I am sure I'm going to have to sit through at least several presentations on how we can remain competitive in the the #AI space and not get left behind like all those losers who are merely doing work with their frail human brains.
#Microsoft #CEO Satya Nadella just stated that #AI has yet to deliver any real value despite massive investment. People in the #tech #industry are shocked.
Shocked? Really?! What is in the #KoolAid these people are chugging?
AI has brought very little value to, well....anything. It's incredibly damaging to the environment, expensive, and the way it's currently being used isn't respectful of privacy nor does it improve the well-being of peoples' lives. Now it's being shoved into pretty much everything.
The sheer volume of money tech companies are willing to "invest" in it really could solve more imminent social crises.
@betelgeuse93 @itsfoss Cuz right now @RaspberryPi too struggle with the Price hikes for #RAM due to artificial scarcity caused by suppliers and artificial demand with #ClosedAI aka. "#OpenAI" literally ordering 40% of all output capacity on the market because the #AiBubble hasn't been popped yet!
- My hope is that #WallStreetBets start shorting all the #AIslop companies so hard that they crash and burn!
When the #AIBubble pops, it's will be the gold age of #CloudGaming.
Imagine all the unused datacenters with GPUs capable of running games in the cloud. Companies will fight themselves to get a piece of the pie and recoup what they spent on AI.
The question isn’t whether the AI bubble will burst – but what the fallout will be
Eduardo Porter
https://www.theguardian.com/technology/2025/dec/01/ai-bubble-us-economy
Had an authentically good experience with an #agentic #LLM the other day! I called the car dealership for an appointment and an #AI answered. Unlike the old "listen to your options" or "please state the purpose of your call" robots, I could speak to it conversationally, and it was very efficient since it had all of my details and their appointment slots available to reference without looking things up.
That being said, this feature has not tripled the valuation of the car dealership.
https://www.brandeis.edu/online/academics/microcredentials/index.html
Note the two "credentials" are AI for STEM and prompt engineering.
Nobody has any business calling these things "credentials", or suggesting they are credentials by naming them "microcredentials". You can't go to your boss waving your prompt engineering microcredential and get a raise, or even a microraise for that matter. You can't access more competitive jobs after obtaining one of these microcredentials.
If they were serious about credentialing people, these would definitely not be the first two made available. They couldn't be more transparently venal. This isn't about credentialing, it's an attempt to profit from the AI bubble.
#AI #GenAI #GenerativeAI #AIBubble #HigherEd #academia #USUniversities #brandeis #BrandeisUniversity #microcredentials
My friends, I can’t shake the feeling that it’s not just the #aibubble that’s about to burst. I think those fuckers will take the internet down with them, making it only useable to those with wealth. And mobile comms too.
Plug in your old landline phone. Give the number to anyone you want to stay in touch with.
Get a #hamradio
Get your favourite photos and important documents printed off.
The digital age as we know it is about to become too risky, unpredictable and limited. I can feel it can’t you?
Doing my best to enjoy the absurdity of people still worried about being left behind if they don't adopt #AI fast enough. I'm sure this will seem quaint once we move on to people cutting off their limbs to install the latest cyborg technology or whatever #scifi bullshit they hype next to boost tech valuations.
"The #AI hype machine relentlessly promotes the idea that we’re on the verge of creating something as intelligent as humans, or even “superintelligence” that will dwarf our own cognitive capacities.
But this theory is seriously scientifically flawed. LLMs are simply tools that emulate the communicative function of language, not the separate and distinct cognitive process of thinking and reasoning, no matter how many data centers we build."
"Earlier this year, Elon Musk built a gas-burning power plant large enough to power a small city, claimed it was exempt from air pollution laws, and placed it next to Boxtown, a Black neighborhood in Memphis where he had built a new data center. People in Boxtown started breathing polluted air – and dying faster. This is what the AI bubble looks like today." - Dwaign Tyndal
#AIBubble
#Elon
#elonmusk
#Climate #ClimateChange
#climatejustice
“They have to keep borrowing more and more because they spend more money than they can get, structurally,” Luria says. “They have to continue to borrow to pay interest on the last loan.”
Silicon Valley and Wall Street are in sync: conjuring up sketchy credit deals that are pointing us toward another financial crash....
“We have sealed the deal on another financial crisis—the question is size,” said one former congressional staffer.#AI #GenAI #GenerativeAI #AIBubble #grift #CasinoEconomy #FinancialCrash #GreatRecession
Let’s start with some very recent history. CoreWeave is a data center company that pivoted in 2022 from crypto. (In 2021, CoreWeave made its money by… mining Ethereum.) Essentially, CoreWeave is a landlord for compute: companies pay for the use of its server racks for AI projects....
CoreWeave chief executive officer Michael Intrator, a former hedge fund manager,...
“They have to continue to borrow to pay interest on the last loan.”So,
- CoreWeave sits at the center of the AI bubble;
- it used to be a crypto company and also gets its (electric) power from a Bitcoin mining company that makes no money and has CoreWeave as its only customer
- it's positioned itself as a rentier;
- its interest payments on previous loans exceed its revenue by a significant amount, so it's paying off loans with more loans and has already defaulted once;
- it has essentially two customers, Microsoft and NVIDIA;
- it has a loan from one of the actors implicated in the 2008 financial crash (Magnetar)
- it's run by a finance guy, not a tech person
- yet it's in the position of someone who takes out a new credit card to pay the interest on the previous credit card
Yeah. Looks like crypto, and crypto's Ponzi scheme way of thinking, has slimed its way into the "real" economy after all.
Oh and welcome back, global financial crash. We missed you. And eyyy, how you doing Enron long time no see:
CoreWeave isn’t alone in its complex finances. Meta took on debt, using a SPV, for its own data centers. Unlike CoreWeave’s SPVs, the Meta SPV stays off its balance sheet. Elon Musk’s xAI is reportedly pursuing its own SPV deal."Complex finances" are what companies engage in when there isn't any there there (SPVs were Enron's "financial innovation" too).
Peter Thiel pulling his investments out of NVIDIA makes far more sense after reading this. Looks wobbly.
It is perhaps time to discuss the enormous stock sales from CoreWeave’s management team. Before the company even went public, its founders sold almost half a billion dollars in shares. Then, insiders sold over $1 billion more immediately after the IPO lockup ended....
“It’s noteworthy that people who have a good view on that business are cashing out,” says Leevi Saari, a fellow at the AI Now Institute.and of course
It makes a certain kind of cynical sense to view CoreWeave itself as, effectively, a special purpose vehicle for Nvidia.#AI #GenAI #GenerativeAI #AIBubble #CoreWeave #CoreScientific #Microsoft #NVIDIA #crypto #grift #CasinoEconomy
HT @berzhu
#AISucks #NoNukesForAI #AI #Enshittification #Environment
#ClimateChange #AIBubble #Capitalism #Datacenters #Crapitalism
Alt...
Futuristic illustration including a golden skin couple with glowing eyes.
"We just saved 20% our power bill by burning down the data center."
You telling me this industry is valued in the Trillions?
Alt...
“Ifeel like a bit of my life was stolen,” James said.
Owen, who is in the middle of a career change, said he had chosen the course
to get the underlying knowledge, not just the qualification - and felt it was a
waste of time.
“To be sat there with this material in front of you that is just really not worth
anyone's time, when you could be spending that time actually engaging with
something worthwhile, is really frustrating,” he said.
Reuters: Tipping point or bubble? Nvidia CEO sees AI transformation while skeptics count the risks https://www.reuters.com/business/tipping-point-or-bubble-nvidia-ceo-sees-ai-transformation-while-skeptics-count-2025-11-20/
Nvidia relief won't be enough to dispel tech-bubble angst https://www.reuters.com/business/finance/global-markets-tech-2025-11-20/ @Reuters #Nvidia #AIbubble
New. Go ahead, ignore all the warnings.
Reuters: ECB warns of 'bubble' in AI stocks as funds deplete cash buffers https://www.reuters.com/world/europe/ecb-warns-bubble-ai-stocks-funds-deplete-cash-buffers-2024-11-20/ @Reuters #AIbubble
@maxitb@ mastodon.social
@arstechnica I hope #artists falefully accused of "#AI" "#Art" will sue #Google for #defamation sooner than later!
Google boss warns 'no ai company techbro billionaire conman is going to be immune from prosecution'' when AI pyramid scheme collapses
https://www.msn.com/en-us/money/technology/google-boss-warns-no-company-is-going-to-be-immune-if-ai-bubble-bursts/ar-AA1QDA1C
Is it finally happening?
Sounds like they're saying they're "too big to fail", doesn't it?
That's a definite sign of the bubble popping, the Rich reminding everyone that they must be bailed out above everyone else.
#AIBubble #TechBros #SiliconValley #Economy
Alt...
Stock market sell-off continues, as Google
boss warns ‘no company immune’ if AI
bubble bursts - business live
Rolling coverage of the latest economic and financial news,
as shares fall across Asia and bitcoin hits a seven-month low
Uh-oh, Reality is knocking at the door, asking why it has been ignored for so long....
#AIBubble #Economy #JPMorgan #WallStreet #DanielPinto #TechBros #SiliconValley
Alt...
3hago 11.50 GMT
JPMorgan's Pinto Warns of Possible ‘Correction’ in Al
Valuations
Valuations in the booming Al industry are due for a reassessment, according
to JPMorgan Chase & Co. Vice Chairman Daniel Pinto.
Speaking at the Bloomberg Africa Business Summit in Johannesburg today,
Pinto also warned that any decline would reverberate across the stock
market.
Pinto warned:
44 “There is probably a correction there.
That correction will also create a correction in the rest of the segment, the S&P
and in the industry.”
Concern has been growing in recent weeks that the valuations of the world’s
largest technology companies could have risen too high, based on an overly
optimistic view of how quickly Al would delivery productivity benefits.
As Pinto explains:
44 “In order to justify these valuations, you are considering a level of
productivity that, it will happen, but it may not happen as fast as the market is
pricing now.”
Well here's a phrase I have not heard before:
"Hindenburg omen"
Certainly can't be referring to that Hindenburg.
Oh wait - yeah I guess it is.
https://en.wikipedia.org/wiki/Hindenburg_Omen
Well - I'm certain that all those big hedge fund folks probably don't take that sort of thing that seriously.
https://finance.yahoo.com/news/peter-thiel-fund-sold-off-103831552.html
Maybe I should just go and stock up on some of that bargain brand cat food - I hear it can taste pretty good when cooked over a can of Sterno™.
#AI #AIBubble #StockMarket #WallStreetBets
Alt...
An advertisement for a variety pack of Kirkland brand wet cat food.
@ChrisMayLA6 I wonder if the Saudi's will be left holding the bag on this thing?
Mister Bone Saw was in Washington today, reminding everyone how much money he has invested in the US and it's AI hustle.
Wait until he finds out he's the bagholder for this bubble....
#SaudiArabia #MBS #AIBubble #USPOL #USPOLITICS
Alt...
Saudi crown prince visits US with
defense, Al on agenda
MBS arrives in Washington this week seeking to cement his
country’s deepening alliance with the US.
ICYMI: Michael Burry, of "The Big Short" fame has made big bets against AI giants like Palantir Technologies and Nvidia.
Burry is one of the few who correctly spotted the housing bubble prior to the 2007-09 recession and bet against mortgage bonds.
Lululemon? - not sure what that's about though...
https://finance.yahoo.com/news/big-shorts-michael-burry-betting-095000681.html
"... Now, I think the game that these guys are playing is different than the traditional one that you see on Wall Street. I think they know they’re in a bubble, and I don’t think they care…." https://broligarchy.substack.com/p/the-great-ai-bubble #AI #AIBubble
The headline / The reality
#AI #AIBubble #Cybersecurity #Anthropic #Claude
Alt...
Disrupting the first reported AI-orchestrated cyber espionage campaign
Alt...
An important limitation emerged during investigation: Claude frequently overstated
findings and occasionally fabricated data during autonomous operations, claiming to have
obtained credentials that didn't work or identifying critical discoveries that proved to be
publicly available information. This AI hallucination in offensive security contexts presented
challenges for the actor's operational effectiveness, requiring careful validation of all
claimed results. This remains an obstacle to fully autonomous cyberattacks
Huge South Korean video game company starts buying out their own staff with huge severance fees, because they expect to use machine learning to do these people's work in the future. Anyone at their Korean offices who has worked for them for at least 11 years can leave today with three years' salary.
They're paying to get rid of their in-house talent and expertise. Good luck with that.
The #US #StockMarket sank to its worst day in a month & its 2nd-worst since April. The S&P 500 fell 1.7% Thurs. The #DowJones fell nearly 800 points, while the #Nasdaq composite lost 2.3%. Nvidia & other #AI stocks dragged the market lower amid continued worries that their prices had shot too high [#AIbubble]. Most other stocks on #WallStreet also fell as traders questioned whether the coming cuts to interest rates that they’ve been banking on will actually happen.
https://xcancel.com/mweinbach/status/1987912908567916693#m
Alt...
Max Weinbach
@mweinbach
Reading a JP Morgan Al CAPEX report
and this is such a great way to put Al
ROI into perspective
to drive a 10% return on our modeled
Al investments through 2030 would
require ~$650 billion of annual revenue
into perpetuity... which equates to
$34.72/month from every current iPhone
RE: https://mastodon.social/@bkastl/115530133826074816
It has been years since the #AIbubble began. As of now, neither Anthropic's Claude, nor OpenAI's ChatGPT are anywhere near profitability, in fact, they are losing money on their paid tiers. They are burning billions to train models with only incremental performance improvements. Meanwhile, over 90% of deployments of AI in companies are failing. It is a bubble, and we need to back away from it, not lean into it.
AodeRelay boostedThat's … special. Scientists in the field of artifical intelligence telling von der Leyen to stop AGI buzzwording.
@FluentInFinance always has been a bubble!
- Short that asshole and the entire #AI industry so hart that they get delisted!
#NotFinancialAdvice #sarcasm #AIbubble #TechBros #AmericanOligarchy
Can we not get one moment of peace between this bubble and the next one?
"Microsoft and Google overstate job creation at Chile data centers
Microsoft and Google say their data centers in Chile would create thousands of jobs. Permit filings show the largest data centers have the potential to create only hundreds of full-time jobs, mostly in security and cleaning. Residents say the local community has not benefited from foreign investment."
https://restofworld.org/2025/data-centers-jobs-microsoft-google-chile/
#AI #AIbubble #technoFascists
🫧 Is the US #AI bubble bursting?
Meta just lost 200+ Billion $ in value, in part because they planned to spend 200+ Billion a year on AI infrastructure¹ 🤣
📉 A solid -13.79% stock price drop within a few days!
Time to #DEMETA?
https://www.reddit.com/r/DeMeta/
¹ https://techcrunch.com/2025/11/02/meta-has-an-ai-product-problem/
#UnitedStates #US #Stock #Investment #Meta #Facebook #MetaAI #tech #corporation #artificialintelligence #news #techcrunch #aibubble #corp #corps #evil
"To be clear, everybody is losing money on AI. Every single startup, every single hyperscaler, everybody who isn’t selling GPUs or servers with GPUs inside them is losing money on AI. No matter how many headlines or analyst emissions you consume, the reality is that big tech has sunk over half a trillion dollars into this bullshit for two or three years, and they are only losing money.
So, at what point does all of this become worth it?
Actually, let me reframe the question: how does any of this become worthwhile?Today, I’m going to try and answer the question, and have ultimately come to a brutal conclusion: due to the onerous costs of building data centers, buying GPUs and running AI services, big tech has to add $2 Trillion in AI revenue in the next four years. Honestly, I think they might need more.
No, really. Big tech has already spent $605 billion in capital expenditures since 2023, with a chunk of that dedicated to 5-year-old (A100) and 4-year-old (H100) GPUs, and the rest dedicated to buying Blackwell chips that The Information reports have gross margins of negative 100%:"
https://www.wheresyoured.at/big-tech-2tr/
#AI #GenerativeAI #OpenAI #Nvidia #AIBubble #Economy #Economics #BigTech
"Look and you will see gambling throughout the economy — in markets, policy and how we talk about the future:
- The tech giants spending billions on A.I. data centers and the power grid to sustain them.
- A government shutdown over Americans’ ability to keep their health care.
- Tariffs used like poker chips to try to shrink the trade deficit.
- The rise of over 13 million memecoins
- JPMorgan now allowing institutional clients to use Bitcoin and Ether as loan collateral
- Venture capital funding companies that let people “bet against their bills”
- And the recent rumblings of bad loans from regional banks.
Public and private sectors are rolling dice that the foundations of the U.S. economy will hold under the pressure. Meanwhile, the institutions and programs that help cushion risk — like Medicaid and the social safety net, information systems, independent regulators and Federal Reserve independence, even the legal system — have come under attack.
As the public sector steps back from its role as a stabilizer, the private sector has rushed in as a gambler, betting that technology alone can hold the system together. Big Tech companies are wagering trillions on A.I. infrastructure that might revolutionize everything, chasing a jackpot that could reshape the world — or leave a mountain of empty data centers and broken promises.
The A.I. boom has grown into one of the largest speculative waves in market history. The sector value of A.I.-linked companies is 17 times larger than the market capitalization of the dot-com era at its peak and over four times as large as the subprime bubble, according to MarketWatch."
https://www.nytimes.com/2025/10/26/opinion/trump-economy-casino.html
#USA #Trump #Capitalism #CasinoCapitalism #AI #AIBubble #Speculation #Crypto #Cryptocurrencies
"Federal Reserve Chair Jerome Powell drew a stark picture of a labor market that looks fine on the surface—4.3% unemployment, solid consumer spending—but is quietly losing momentum underneath. Once you adjust for statistical overcounting in the payroll data, he said during a press conference Wednesday following the FOMC meeting, “job creation is pretty close to zero.”
He connected that slowdown, at least in part, to what CEOs are now openly telling investors: AI allows them to do more with fewer people.
He noted “a significant number of companies” have recently announced layoffs or hiring pauses, with many of them explicitly citing AI as the reason.
“Much of the time they’re talking about AI and what it can do,” Powell told reporters after the Fed’s rate-cut decision, warning large employers are signaling they won’t need to add headcount for years. “We’re watching that very carefully,” he added.
The comments come as the Fed cut interest rates by a quarter point to a range of 3.75%–4%, citing “downside risks to employment” even as inflation remains elevated."
https://fortune.com/2025/10/30/jerome-powell-ai-bubble-jobs-unemployment-crisis-interest-rates/
Let me be clear... if your a company that needs to:
- "tank a gaming division" you spent $100 billion on (buying up other studios).. (Microsoft, Amazon, Netflix)
- fire 10% of your devs/engineers every few years (Microsoft, Amazon, FB)
- force 'integrate' unwanted crapware on customers who don't want to use lying, plagiarizing, shit generating systems you're trying to pass off as AI
That's not a "healthy" company that can "afford" the unlimited spending to keep the #AIBubble from popping
I don't understand this #AIbubble bullshit.
NVDA, MSFT, AMZN, TSMC, ASML, GOOG ... are not going to go bankrupt next year. If you think that, ok. Build a cave. Learn how to make fire with two sticks.
You have to learn new things. Of course there are mayflies. That's what you can avoid by learning about the concepts. Just like PHP survived the dot-com, models are going to survive US venture capitalism.
The end goal is ALL JOBS CUT!
And the oligarchs will much sooner eat shit than allow any #AIbubble to burst.
#miltonfriedman the high priest of crapitalism spent his entire life preaching about rationality of the markets...
... Only to scurry away in his twilight years crying that markets, afterall are not at all rational.
TLDR; When the super wealthy don't want the pop, it ain't happening.
The responses given by the various stakeholders in this piece by the Financial Times are quite revealing. When asked, companies having adopted AI claim huge efficiency and productivity increases- except that they are not reflected in actual filings and numbers. Supposedly, the reason companies are not seeing the returns for their investment in AI is: "You're holding it wrong" or that "employees haven't been taught to use the AI tools properly".
I have an alternate theory: The issue isn’t the people, but the tools. The tools can't be used for everything, and often cannot be used at all due to being too error-prone or generally unsuitable for tasks at hand. Not all tasks can be reduced to prompts. The companies have bought into the AI Kool-Aid and marketing and are now grasping for straws trying to find ROI, which just isn't there.
The #AIbubble thwarts the dot-com and housing bubbles combined. No one dares to admit that this has all been a huge multi-trillion mistake - AI is too big to fail now.
https://www.youtube.com/watch?v=GY_Ywqd3mzA "The AI rollout is here - and it's messy | FT Working It"
“This is the cruelest logic of the casino economy, stripping away health coverage from working-class Americans to give tax breaks to companies gambling on speculative ventures; reducing food assistance to fund capital gains preferences for investors playing the memecoin market; firing hundreds of thousands of federal workers to ‘save’ money while bleeding institutional knowledge and capacity.
The math doesn’t work. The morality doesn’t either.”
#casino #economy #aibubble
https://www.nytimes.com/2025/10/26/opinion/trump-economy-casino.html?unlocked_article_code=1.wk8.2ydf.0W1VBq9t2vhN&smid=nytcore-ios-share&referringSource=articleShare
"In 2024 alone, private U.S. investment in artificial intelligence reached roughly $109 billion, according to Stanford’s AI Index Report 2025, and major firms are now committing hundreds of billions more to AI infrastructure and data centers in 2025. For comparison, researchers estimate that ending homelessness nationwide would cost on the order of $9–30 billion a year; clearing the public-transit repair backlog would require about $140 billion; and cancelling student debt for millions of Americans could cost anywhere from $300 billion (for a $10,000 per-borrower plan) to over $870 billion. These are not impossible sums; they are simply directed elsewhere. The problem is not that we invest in technology — it’s that we do so to avoid investing in one another. We could rebuild public transit, deliver universal healthcare, cancel student debt, end homelessness — all projects of collective possibility — but instead we feed the circus. We reward those who promise salvation through algorithms while punishing those who simply demand dignity through policy. And if AI spend is today’s growth engine, it is also today’s concentration risk — a stimulus routed through a handful of firms, data centers, and supply chains.
The defenders of this frenzy will tell us to look forward — to think of the productivity gains that will surely justify today’s excess. It is, they insist, short-sighted to critique the future before it arrives. But history is not a ledger that balances itself. Productivity gains are not moral gains; they are distributed, like everything else, according to power. The Industrial Revolution doubled output but also deepened inequality. The internet democratized information yet concentrated ownership. Efficiency rose; bargaining power fell."
"The burden that OpenAI is putting on the financial system is remarkable, and actively dangerous. It would absorb, at this rate, the capital expenditures of multiple hyperscalers, requiring multiple $30 billion debt financing operations a year, and for it to hit its goal of 250 gigawatts by the end of 2033, it will likely have to have outpaced the capital expenditures of any other company in the world.
OpenAI is an out-of-control monstrosity that is going to harm every party that depends upon it completing its plans. For it to succeed, it will have to absorb over a trillion dollars a year — and for it to hit its target, it will likely have to eclipse the $1.7 trillion in global private equity deal volume in 2024, and become a significant part of global trade ($33 trillion in 2025).
There isn’t enough money to do this without diverting most of the money that exists to doing it, and even if that were to happen, there isn’t enough time to do any of the stuff that has been promised in anything approaching the timelines promised, because OpenAI is making this up as it goes along and somehow everybody is believing it.
At some point, OpenAI is going to have to actually do the things it has promised to do, and the global financial system is incapable of supporting them.
And to be clear, OpenAI cannot really do any of the things it’s promised."
@noondlyt @Teri_Kanefield @matera
The main issue is a “fish oil” issue: fish oil is useful stuff, it can provide important nutrients, it can lubricate and ‘derust’ nuts and bolts, but it can’t cure cancer and it won’t protect you from measles and promoting it that way does a lot of harm.
AI (LLMs) are marginally useful in certain applications, have interesting possibilities in a few others, but are *very* expensive to run and are being sold as magic fish oil to “cure all that ails ya!” … we’ll find out all its limitations in time, but in the meanwhile the AI craze is doing a mountain of harm.
Never in my life have I seen a clearer demonstration of the proverb “to a man with a hammer, the whole world is a nail” … especially when he can get rich renting his hammer out to other people.
https://www.theregister.com/2025/10/15/openais_chatgpt_popular_few_pay/ “More than a few have observed this circular investment scheme looks a lot like a bubble.” While I have a lot of problems with the current AI craze, I do find the aesthetic parallel of a speculative bubble and a circular investment scheme very satisfying #AIBubble #CircularInvestment #investing #circles
During the US Savings & Loan Crisis of the 80s/90s, we refinanced our home loan *down* to 9%.
At the time the dot-com bubble popped in 2000, we owned a bar in Seattle that catered to techie 20-somethings who lost their jobs & income.
In 2009, right after the Financial Crisis, I worked in the financial industry amid the turmoil.
I feel like by now I know a bubble when I see it. This AI bullshit is a bubble.
Signed, a seasoned observer
I’m sure this is fine.
“'Very troubling': AI's self-investment spree sets off bubble alarms on Wall Street”
#AIBubble #PonziScheme
https://finance.yahoo.com/news/very-troubling-ais-self-investment-spree-sets-off-bubble-alarms-on-wall-street-160524518.html
@ChrisMayLA6 In a democracy run by the mob, the automated control of information just ensures the people will remain captive to corporate sovereignty. It will and has always rewarded those politicians who pass acts and bills that further the theft and destruction of others capital e.g. Indigenous people, Iraquís, Congolese, Palestinians etc. #AiTyranny #IPTheft #AiWars #ArtificialInformation #AiScam #AiApartheid #AiUnemployment #Ai #AiFascism #AiBubble #AiDepression #AiGovernment #AiEmpire #AiPurges #AiGenocides #AiEcocide
The Big Short - The scenes where Michael Burry (Christian Bale) is making the rounds of the banks buying massive short positions on the housing market. The bank’s investors are rubbing their hands in glee at all the interest payments they will get from him while the positions remain high.
I have a horrible feeling that’s where we are now.
If I knew how to short and I had the guts to take the risks I’d be doing that now.
Found another guy who has attended the #EdZitron school of enumerating the bullshit AI numbers. https://youtu.be/CBCujAQtdfQ
"To start with, I had previously assumed a 10-year depreciation curve, which I now recognize as quite unrealistic based upon the speed with which AI datacenter technology is advancing. Based on my conversations over the past month, the physical datacenters last for three to ten years, at most. Changes to cooling systems, chip and racking designs, power systems, and even overall layouts, mean that the buildings themselves are likely depreciating quite rapidly as well. Then when you consider that new GPU iterations, which seem to come out every year or two, effectively obsolete prior models, you realize that I should have been using a much faster depreciation curve across the whole capitalized structure.
However, if you speed up the depreciation curve to something in the three to five-year range, it would imply that my prior breakeven revenue number of $160 billion to justify 2025’s capex spend, is woefully inadequate. In reality, the industry probably needs a revenue range that is closer to the $320 billion to $480 billion range, just to break even on the capex to be spent this year. As I wasn’t educated on the intricacies of a datacenter, I wasn’t bearish enough on the economics of an AI datacenter. No wonder my new contacts in the industry shoulder a heavy burden—heavier than I could ever imagine. They know the truth.
Remember, the industry is spending over $30 billion a month (approximately $400 billion for 2025) and only receiving a bit more than a billion a month back in revenue. The mismatch is astonishing, and this ignores that in 2026, hundreds of billions of additional datacenters will get built, all needing additional revenue to justify their existence. Adding the two years together, and using the math from my prior post, you’d need approximately $1 trillion in revenue to hit break even, and many trillions more to earn an acceptable return on this spend."
https://pracap.com/an-ai-addendum/
#AI #GenerativeAI #AIBubble #PonziScheme #Economy #AIHype #DataCenters
In a bad sign for #AI, #Microsoft is peddling an #Analytics tool that treats use of #Copilot365 as a #KPI. The move's only logical use is to drive consumption of their own product, either by advertising the use to managers or by getting managers to mandate use of the product.
#TechnologyNews #AIBubble #Enshittification #ManagementAndLeadership
https://www.theregister.com/2025/10/10/microsoft_copilot_viva_insights