AI Bubble Debate
The cluster focuses on debates about whether the rapid influx of investor money into AI startups and companies represents a speculative bubble akin to the dot-com era, with discussions on hype, sustainability, potential bursts, and comparisons to past tech booms.
Activity Over Time
Top Contributors
Keywords
Sample Comments
Maybe they're riding the AI hype and burning investor money?
Upvote because can someone explain to someone as dense as me, whether or not this is likely to make some likely AI bubble worse? Is this just how industry allocates capital?
This is not openai, but AI in general, while being usefull it has yet to deliver. We sre living the same hype as back in the dotcom bubble. And when there is a bubble, it will fizzle out slowly or burst overnight.
AI is not going away.The bubble might burst though when there are big break throughs by someone like OpenAI or google, as right now money is being thrown at anything with AI in the name, when those startups fail to deliver the bubble will burst and all the spoils will go to a few that actually are able to deliver, making the rest irrelevant.
Looks like everyone is jumping into the AI game. Is there a bubble?
I don't think AI is a bubble. AI, unlike other tech businesses before it, is similar to heavy industry. You need a lot of CAPEX, Capital Expenditure. No more two people in the garage, since you probably need Nvidia GPU's that cost $30k a pop. End of day, all the money being invested into AI ends up within a few companies - Microsoft, Amazon, Google, and Nvidia. Due to cloud costs, and marketing costs.
Objective info is currently hard to come by, but my horse sense is that Big AI is subsidizing it for many projects, including those in other companies, to gain both market share and investor excitement (deserved or not).If one looks at most the bubbles of the past, the writing is on the wall. AI won't go away, but will probably take longer to make profitable than anticipated, just like dot-coms and smart-speakers. Force feeding it is causing indigestion, and it's likely to PukeGPT.
I mean start here: https://www.washingtonpost.com/technology/2024/04/18/ai-bubb...
While it's great that speculation moved from "when will AGI come?" into "when will those companies blow?", I don't think they will blow any time soon.If you have been following things, you may have noticed that there's no large economic sector out there consistently returning investments. And the investors money isn't just disappearing nor any such investor just deciding to spend everything in some beach vacation somewhere.Until that changes, bubbles
Discussion (18 points, 1 hour ago, 9 comments) https://news.ycombinator.com/item?id=41140167Related Big Tech says AI is booming. Wall Street is starting to see a bubble (79 points, 6 days ago, 94 comments) https://news.ycombinator.com/item?id=41087719