Technology

The funny thing about people who say it’s not a bubble because AI has value is that the asset category having value doesn’t prevent valuation bubbles from forming.

Houses have value: you can live in them. Yet there was a housing bubble.

The internet has value: you can watch cat videos on it. Yet there was a dot com bubble.

Tulip bulbs have value: you can grow pretty flowers with them. Yet there was a tulip bulb bubble.

In my experience, whenever you start reading news stories asking if something is a bubble and quoting investment bankers say, “no, it’s not a bubble,” well, usually it’s a bubble.

There is definitely a bubble. But also what Nvidia is doing is smart. They have boatloads of cash. They are investing that cash in the companies that are using their products to create money making services. If one of them can create a killer app or viable service this will create demand for their products and they will have an ownership stake in it. Is this guaranteed or even likely? Probably not. We have reached the point where we were in 1996 where the chairman of the fed came out and said we are in a period of "irrational exuberance." That bubble took four more years to pop. This one may end quicker, but it is impossible to tell when it will end or what will come out of it from where we sit today.

Hold up everyone. It's not a bubble.

"So it is true that valuations are high but, in our view, generally not at levels that are as high as are typically seen at the height of a financial bubble," said Goldman Sachs strategist Peter Oppenheimer.

He's from GOLDMAN SACHS LOLOLOLO I THINK THEY WOULD RECOGNIZE A BUBBLE LOL ah fuck me our economy is gonna splode

I see "gold rush" the company selling shovels is making out like a bandit, everyone else is make a profit on the previous gen but requires a 10x cost increase for the next gen. And thus 10x more shovels.. As soon as 10x more shovels stops giving 10x+ improvements this is the wrong investment.

Hints are we already reached this point.

Some AI companies will pivot and improve in other ways with more linear costs/results.. The ones hoping the line continues to the moon.. I think they overshot.. I just don't know when it will fall back..

NVIDIA really out here selling shovels in the gold Rush

If not for the banks investing hevily into it, i'd not be all that worried.

Every company in that list could shrink by half and we'd all be at worst back to covid times. Sure unemployment would suck, but do we REALLY need microsoft and NVidia to be as huge as they are?

If Lemmy is supposed to be the place where the most tech savvy people in the interest congregate, and everyone in the comments is unsatisfied with AI then we really do have a problem. These companies have all reached a point where they no longer listen to their most informed customer base but instead take 100% of direction from investors who don't even know what they want except a line going up.

People need housing, no one needs this AI crap. Even in boring engineering jobs using tools that solved problems decades ago, we are getting AI shoveled in left and right in places no one needs or wants it. And calling old features "AI" is also another problem.

And now these stupid "barking bears attacking fat sleeping people" videos are everywhere, and people seem to think they're real.

We should focus on natural intelligence first, that is to say each other, and education...

Oh and the headline should read "Every day", "everyday" is an adjective, like an everyday occurence.

It's objectively a bad thing when a country's entire economy is being propped up by seven companies and the vast majority of consumer spending is concentrated in the top 1%.

This doesn't really tell me anything, I'd have to compare it with other charts. E.g. what does the chart for agriculture look like? Airplane manufacturing? Internet in early 2000s?

But what will be left after it bursts? At least in cause of the housing bubble - the houses existed physically - what will be after the AI crash? Lots of spare gear sold for cheap?