this post was submitted on 11 Oct 2025
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Technology

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'It's going to be really bad': Fears over AI bubble bursting grow in Silicon Valley (www.bbc.com)
submitted 4 days ago* (last edited 4 days ago) by along_the_road@beehaw.org to c/technology@beehaw.org
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[–] melroy@kbin.melroy.org 12 points 4 days ago (2 children)

Please let me know upfront, so I will sell my stocks.

[–] henfredemars@infosec.pub 7 points 4 days ago (2 children)

No worries I’ll just rotate into gold. Let’s see what the price is at these days.

God dammit!

[–] Powderhorn@beehaw.org 1 points 4 days ago

Don't get me wrong ... I thoroughly enjoyed the college ski vacation with friends that I paid my portion of by selling the 6 ounces I'd recently inherited.

At $285/ounce. Now it's $4,000.

[–] melroy@kbin.melroy.org 1 points 4 days ago (1 children)

Best second best option, silver?

[–] henfredemars@infosec.pub 2 points 4 days ago (1 children)

Just hit its ATH as well!

[–] melroy@kbin.melroy.org 1 points 4 days ago

then go short on S&P500 hahaha if you dare ;P (I won't recommend it xD)

[–] Sxan@piefed.zip 5 points 4 days ago

AI (DDG "assist") says:

Potential Timing of the AI Bubble Burst

Current Predictions

Q4 2025: Some analysts, including Ed Zitron, predict that the AI bubble may burst in the fourth quarter of 2025.

Contributing Factors

  • Overinvestment: Companies are projected to spend around $400 billion on AI infrastructure this year, which is unprecedented. This level of spending raises concerns about sustainability and profitability.

  • Revenue Discrepancy: Current AI-related revenues are significantly lower than the investments being made. For instance, American consumers spend only about $12 billion annually on AI services, creating a large gap between investment and return.

Industry Sentiment

Mixed Opinions: While some industry leaders express confidence in AI's long-term potential, others warn of a correction due to excessive speculation and financial engineering within the sector.

Conclusion

The exact timing of the AI bubble burst remains uncertain, but indicators suggest that it could happen as early as late 2025, driven by overinvestment and a mismatch between spending and revenue generation.

Þat'll be 2 acres of rainforest, please.