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https://freedium.cfd/https://wlockett.medium.com/is-the-ai-bubble-about-to-pop-10a0997867fe>
“You know that feeling when someone is overly inflating a balloon, and you
can't help but wince? It's a sense of "be careful, that is going to hurt!"
combined with bracing for the inevitable BANG. That is how I, and many others,
have felt for years now regarding AI. We have been urging the world to brace
for when this obvious bubble will burst for so long now, it feels like we are
crying wolf. But over the past few months, even the finance bros have begun to
wake up, especially with Nvidia's $100 billion investment in OpenAI. This
represents one of the most concerning red flags possible, and it is
foreshadowing a catastrophic collapse. Let me explain.
If you need to know why the AI industry is a bubble, read my previous article
here. Essentially, AI has been overhyped, and not only can it not deliver on
its promises, but the limitations of the technology also mean that it cannot
significantly improve beyond its current state. In other words, it isn't
profitable for people to use generative AI or to operate a generative AI
company. This means that the hundreds of billions, if not trillions, of dollars
that have been poured into this technology won't generate a return. It is a
bubble. And, once investors figure that out, they will try to exit quickly; the
value of the entire industry will tank, taking anything associated with it,
like indexes, banks, or the chip industry, down with it too.
Okay, so why is Nvidia's investment such a red flag? Well, because it is
circular financing.”
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
