Comment on When the AI bubble bursts
jrs100000@lemmy.world 1 day agoEven technologies that totally transform society, like trains or the Internet, can overinvest and eventually pop. It doesnt mean the tech goes away, it just means investors take a bath and the dead weight gets burned off.
Buffalox@lemmy.world 1 day ago
Yes I think Facebook and Microsoft may lose money on this, you could call that over investing, but for it to be a bubble that burst, companies need to go down, and people lose money on it.
Otherwise you may be looking for a completely different word which is fad, a period where something is over hyped, but quickly settles down like Fidget Spinners.
I don’t think we will see a financial bubble burst due to AI.
META is losing money like crazy on their “META” project that will never succeed, and they may lose just as much on AI, but they will not go bankrupt on it.
What I mean is that more money will be made on AI, than is currently lost experimenting with it.
jrs100000@lemmy.world 1 day ago
It would be pretty unusual for a company on the scale of Facebook or Microsoft to go under due to a bubble like this, although it is slightly possible they might slip down a tier in the shuffle. Its more likely well see lots of shitty little companies tacking AI onto things that dont need AI go under, and the speculative ventures burning investor money on market share or technologies that may never turn profitable will be thinned out greatly. Its also possible we could see some big names that dont have revenue outside the AI market suffer financial setbacks and be absorbed. Its also possible the bubble could continue to grow for years and we could see some really ridiculous investments and an even more devastating crash in the end.
Buffalox@lemmy.world 22 hours ago
I think the difference here is that you can’t quite just put an AI tag on something, and then investors flock to give you money.
The AI companies that are invested in, are mostly companies that actually have something to show. And the biggest investment and benefactor is Nvidia that actually makes loads of money from AI products.
jrs100000@lemmy.world 18 hours ago
But they do. Lots of crap has “AI powered” plastered on the investor prospectus with no real world application. The worst Ive seen has been targeted at audiences that wernt burned by .com, such as in China, but even in the US youll have a hard time finding a startup that doesnt incorporate AI in some way.