Comment on AI one-percenters seizing power forever is the real doomsday scenario, warns AI godfather

• SmoothIsFast@citizensgaming.com ⁨11⁩ ⁨months⁩ ago

  AI isn’t a stock.

  No but investments into AI from companies has completely ballooned stock prices of certain companies, which is due for a correction.

  a final pump before the dump.

  This is not how investment capital works.

  This is exactly how investment capital works. You pump gain value on the up side and dump while getting into short positions to profit from the creation and implosion of a bubble. They then before a bubble burst draw up public support to unload the bags on. Risne repeat and move on, it’s the playbook for VC…

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  • SCB@lemmy.world ⁨11⁩ ⁨months⁩ ago

    This is exactly how investment capital works. You pump gain value on the up side and dump while getting into short positions to profit

    Investment capital and stock purchases are different things.

    VC means “venture capitalist” and the “venture” part is when you invest in a private (i.e. “doesn’t have stock”) company.

    So no, this is not how any of this works.

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    • SmoothIsFast@citizensgaming.com ⁨11⁩ ⁨months⁩ ago

      Investment capital and stock purchases are different things.

      No shit, it’s why if you are in the market to offset risk you are going to open a short position through your family office once that company eventually tries to IPO which is able to skirt reporting requirements via equity swaps. As I said investment captial is used for pumping and artificially moving goal posts so that post eventual ipo you can have untenable growth targets that justifies your new found short exposure for those “fundamentals” you describe.

      VC means “venture capitalist” and the “venture” part is when you invest in a private (i.e. “doesn’t have stock”) company. You may have confused this with VCs wanting to get in early before an IPO (Initial Public Offering), so they can get out big and early.

      Yes as I explained, they use private investment before public scrutiny to create untenable growth targets, generate hype around the ipo, cash out and short the fucker to the ground to essentially doubling any gains. It’s extremely common place, which is why it’s always a trope around VC firms and their evaluations in any business type media.

      So no, this is not how any of this works.

      Yes once again this exactly how this all works.

      Very few AI companies are publicly traded, because the industry is still almost entirely startups (hence the capital interest)

      How many times does one need to state the bubble is not on the AI tech itself, it’s on those companies introducing AI into their workflow where the asset bubble is occurring as they are inflating the gains AI will actually bring. The VC funds are there so that the AI companies can be sized up with untenable growth projections and evaluations to prevent long term growth allowing companies like Microsoft to come in and scoop up the IP for significantly cheaper than developing it themselves, cough openAI cough cough.

      Contrary to what GME cultists will tell you, pump and dumps are pretty rare outside of crypto. Crypto is vulnerable to it because there are no fundamentals and market value based is entirely on speculation.

      Fuck you wall street shills are always so predictable, no one is a cultist with GME we are all household investors who saw a completely overshorted company and invested. Continued to investigate the market and are now trying to apply regulatory pressure as individuals to make sure we have the same access and ability to work in our financial markets as any wall street company does. Pump and dumps are not rare outside of crypto, for fucks sake just listen to cramer for a week you probably identified 10 stocks being gamed as he tries to sell his viewers on that “investment”. Granted most money on your general stock market is siphoned off using off exchange trading, pfof, and etf share fabrication under market making exemptions.

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      • SCB@lemmy.world ⁨11⁩ ⁨months⁩ ago

        Imagine knowing so little but writing so much.

        Bonus fun y points for calling me a “wall street shill” in a thread abnut an interaction that specifically does not involve the stock market.

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