Comment on Nvidia becomes first company to reach $4tn in market value
FRYD@sh.itjust.works 4 days agoI meant the big tech firms buying nvidia gpus and driving up the share price. If Google/FB/Amazon/etc got broken up, they wouldn’t be trying to squeeze infinite money out of so called AI and nvidia wouldn’t be a $4 trillion balloon.
I don’t think nvidia could be broken up much like you say, but it’s still only worth so much because of all the other monopolies (that’d be easier to break up) paying into it.
Blue_Morpho@lemmy.world 4 days ago
If there were more Google/FB/Amazons there would be even more hardware purchases because there would be more companies competing to dominate AI.
FRYD@sh.itjust.works 4 days ago
No if they didn’t already dominate their respective markets, they’d have to actually compete against other companies. In a competitive market, there would be no reason to invest hundreds of billions of dollars into LLMs which are unprofitable, inaccurate, and have very limited use cases. AI wouldn’t be a bubble if these companies had any incentive to make good products and competition is supposed to be that incentive.
Maybe down the line, the tech sector would’ve had an AI boom anyway. As it stands however, there is no real race to dominate AI. It’s a scramble to try to sell LLMs as intelligent so they can get AI money without actual AI tech.
Blue_Morpho@lemmy.world 4 days ago
That’s not how capitalism works at all. Companies are spending money on AI because they need to compete against other companies. In the absence of competition, companies do not spend money chasing risky new revenue streams but milk their existing base.
If there was only Microsoft, and no other software company on the planet, Microsoft would not spend money on AI because they wouldn’t need to.
A big part of Marx’s criticism of capitalism is the waste it creates through duplication of effort.