tkw8@lemm.ee to

No Stupid Questions@lemmy.worldEnglish · 1 month ago

When people say the AI bubble will burst, what exactly does that mean?

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When people say the AI bubble will burst, what exactly does that mean?

tkw8@lemm.ee to

No Stupid Questions@lemmy.worldEnglish · 1 month ago

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I see lots of talk on Lemmy about the AI bubble bursting. That AGI isn’t going to happen in the near-term, maybe it won’t ever happen. And so the the AI bubble will burst; ala the dot-com bubble.

But what exactly will burst? OpenAI and Claude? Those are private companies so maybe they will downsize or merge, but that’s not a bubble? NVIDIA & Microsoft? I don’t really see those companies imploding. They have a pretty large and diversified customer base. Besides, Apple and AWS are already moving away from NVIDIA by making their own hardware. I genuinely don’t understand where the big implosion is. Can someone help me understand this?

ETA: Is there an example analogous to pets.com for this AI bubble?

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1 month ago
Financial bubble.

OpenAI is valued at 157 billion USD (1). Has a revenue of 2 billion USD (2), and operates at a loss of 5 billion USD (3).

It’s a fine product for sure. It’s just part of the hype cycle. Remember when uber was going to change transportation forever?

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