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?
Colloquially, it means we’ll hopefully stop seeing “AI” shoved into every nook and cranny of every piece of software to tick a buzzword box.
there’s a lot of AI based startups promising their investors all sorts of outlandish results. eventually it’s going to become clear that those results are not coming and the investors will come calling.
It’s extra frustrating for those of us working in companies where ML is actually a useful tool that we’ve been leveraging for years.
I remember when I was arguing “It’s not ‘learning’, it’s algebra”.
Now the hype has gone from learning to intelligence.
It’s still algebra.
Well yeah - but technically everything is just algebra.
If it happens on a computer, it can be expressed in s expressions.
The big players will likely continue to develop this tech. “The Bubble” is more about the marketing and speculative investing in anything with “AI” tacked onto it. There’s no reality where everything AI is being ham fisted into is going to be successful. There will be some winners, but there will be a lot of losers when the bubble bursts.
In the meantime, we have to put up with every company and product marketing that they now have “AI” in their product, whether it’s actually useful or different from it was before.
The American stock market is hugely weighted by the top 5 or so companies, all of whom if I remember have jumped hugely in value based on ai (nvidia, microsoft, amazon, apple, meta) so if it turns out/investors decide there isn’t a way to make ai profitable, those valuations tumble as does the American stock market and likely the world’s.
