Reuters reports that AI-related companies lost $190 billion in stock market value on Tuesday following disappointing earnings reports.
That’s a weird take given the actual numbers and relative results per company, but ok.
AI Companies Lose $190 Billion After Dismal Financial Reports
Submitted 11 months ago by stopthatgirl7@kbin.social to technology@lemmy.world
https://futurism.com/the-byte/ai-companies-lose-190-billion-dismal-google-report
Comments
kromem@lemmy.world 11 months ago
realharo@lemm.ee 11 months ago
not having its AI efforts actually change product usage
Are you ignoring Github Copilot?
archomrade@midwest.social 11 months ago
Microsoft’s performance was actually strongest in their Azure services in their earnings report, and I can’t think of any AI products tied directly to that part of their business
Although to be fair, their big push now is baking copilot directly into Windows 12, so it would be fair to think their long term outlook is tied to that service
drmoose@lemmy.world 11 months ago
What a clickbait “article”. The whole stock market crashed and in fact the company with the biggest AI investments (Microsoft) crashed the least!
TheBat@lemmy.world 11 months ago
growth
Swelling, more like
ShepherdPie@midwest.social 11 months ago
It’s not a toomah!
drdabbles@lemmy.world 11 months ago
All scams come to an end when they run out of marks to steal from.
Rooter@lemmy.world 11 months ago
This is such clickbait. They just added up the total stock decline in every company that has any involvement in AI. They call Google and Microsoft AI companies.
ShepherdPie@midwest.social 11 months ago
AI is clickbait, too, so does that mean they cancel each other out or is the clickbait twice as strong?
Tangent5280@lemmy.world 11 months ago
By the way errors are dealt with in physics, I think the error only adds up. So double the clickbait.
Copernican@lemmy.world 11 months ago
Look at the reuters article: reuters.com/…/ai-companies-lose-190-billion-marke…
Jan 30 (Reuters) - AI-related companies lost $190 billion in stock market value late on Tuesday after Microsoft (MSFT.O), opens new tab, Alphabet (GOOGL.O), opens new tab and Advanced Micro Devices (AMD.O), opens new tab delivered quarterly results that failed to impress investors who had sent their stocks soaring. The selloff following the tech giants’ reports after the bell underscored investors’ elevated expectations following an AI-fueled stock market rally in recent months that propelled their shares to record highs with the promise of incorporating the technology across the corporate landscape.
I don’t know that I would say this has anything inherently to do with AI…
The reuters article for AMD specifically: reuters.com/…/high-flying-chipmakers-hit-after-am…
Jan 31 (Reuters) - High-flying semiconductor stocks slipped on Wednesday after Advanced Micro Devices’ (AMD.O), opens new tab disappointing current-quarter revenue forecast added to investor worries over sluggish demand for non-AI chips
…
That overshadowed the company near doubling its AI processor projections to $3.5 billion for 2024.
Daft_ish@lemmy.world 11 months ago
No shit that was a bubble. Fun for all of two seconds but application in its current form is niche/sketchy at best. There is lots of promise for the future of AI but right now it just makes things more complicated.
iAvicenna@lemmy.world 11 months ago
bubbles like this can set back that future by decades though…
OpenStars@startrek.website 11 months ago
Maybe they should try making products that work instead of trying to shove ads down our throats? How’s that for a business model: give the customer what they want?
FaceDeer@kbin.social 11 months ago
Many of their customers want them to produce ads.
OpenStars@startrek.website 11 months ago
Fair - but I would hope for a functional product supported by delivery of ads, rather than ads that exist for the purpose of ads so that there can be more ads delivered along with the ads (oh yeah, and somewhere in there, a product… which itself is little more than merely another thinly-disguised advertisement).
Google is the perfect example: it made its name bc it WORKED, then it started to be supported by ads - okay fine so far - then the ads took over and now very often, it merely passes on SEO “ads” (except crucially: remember that was supposed to be the product) rather than show actual results. Plus on top of that, it also shows the ads. The latter are fine but the former are most definitely not, especially when it pushes out real results so that like even on page 5 you can’t find what you were looking for, which might still be the very top result of DuckDuckGo hence cannot be that hard to produce. It exemplifies the process of enshittification for us all.
Shurimal@kbin.social 11 months ago
How’s that for a business model: give the customer what they want?
They're doing just that, alright.
But people buying the products are not the customers of these big publicly traded companies.
OpenStars@startrek.website 11 months ago
That’s the same reason that the Windows OS sucks so bad: the “customer” is the companies paying for licenses, not individuals wanting things to “just work” without an entire IT department at their backs.
Although I would guess that even stockholders would not like the fact that these companies lost billions of dollars.:-|
xantoxis@lemmy.world 11 months ago
The companies didn’t lose that money. Their investors didn’t even lose that money. A number went down temporarily, that’s all.
Matriks404@lemmy.world 11 months ago
I remember YouTube videos where idiots said that we’d have very advanced AI by GPT-5 and singularity is just around the corner. Marketing stuff of these companies pushing language models made us all fools (including me).
ShepherdPie@midwest.social 11 months ago
The same thing was said about self-driving. I recall arguing with people on reddit back in like 2018 who called me an idiot because I didn’t believe we’d have full autonomous driving within the next few years. I swear these people jump from one fad to the next and dive into each one head first.
Traister101@lemmy.today 11 months ago
Uh yes, they do. It’s the same group of people falling for this stuff over and over. Crypto, NFTs, Self Driving, AI now. What’s important to them is being able to point at this stuff and make a wojack face
Yewb@lemmy.world 11 months ago
If / then / switch / while
All of these are examples of what executives are calling AI there are many scams its hilarious.
Grifters gunna grift they face no clawbacks from lying to investors.
nick@midwest.social 11 months ago
lol rekt
JoMomma@lemm.ee 11 months ago
ChatGPT says:
Investing in AI, like any other sector, carries risks that could potentially lead to financial challenges or even bankruptcy for companies. Some factors include:
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High Initial Costs: Developing AI technologies often requires significant upfront investments in research, development, and infrastructure. If these costs are not managed well or if the technology doesn’t gain traction, it can strain a company’s financial resources.
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Market Uncertainty: The AI market is rapidly evolving, and success depends on staying ahead of technological advancements. If a company fails to adapt or faces competition with superior innovations, it may struggle to maintain market relevance.
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Regulatory Challenges: The AI industry is subject to evolving regulations, and changes in legal frameworks can impact operations. Non-compliance or unexpected regulatory hurdles can lead to financial setbacks.
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Cybersecurity Risks: As AI systems become more integrated into various sectors, the risk of cyber threats increases. A significant cybersecurity breach could result in financial losses, reputational damage, and legal consequences.
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Limited Adoption: If the adoption of AI technologies is slower than anticipated, companies heavily invested in AI may struggle to generate expected returns on their investments, potentially leading to financial distress.
It’s important to note that while AI presents significant opportunities, prudent management, market understanding, and strategic planning are crucial to mitigate risks associated with investing in this dynamic and evolving field.
stopthatgirl7@kbin.social 11 months ago
The irony of using ChatGPT for this of all articles.
admin@lemmy.my-box.dev 11 months ago
Yeah, just goes to show that the AI hype may be peaking, it’s not going away.
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SatanicNotMessianic@lemmy.ml 11 months ago
“AI Winter is coming”
-Ned Stark
Ep1cFac3pa1m@lemmy.world 11 months ago
I’ll never forgive D&D for what they did to that show. It was omnipresent in public consciousness for like a decade, and they fucked the last couple seasons so badly it’s now all but forgotten. It’s almost impressive in a depressing kind of way.
recapitated@lemmy.world 11 months ago
If the last 40 years has taught us anything, it’s that the time is always right to short ai companies
LarmyOfLone@lemm.ee 11 months ago
Does that have anything to do with the IP power grab that is apparently under way? I’ve seen the propaganda and the mood seems to be that AI should be monopolized by the few super rich.
mPony@kbin.social 11 months ago
I thought the mood was that everything should be monopolized by the super rich.
bmsok@lemmy.world 11 months ago
Artificial Intelligence at this stage is Artificial Ignorance. It’s not ready to be unleashed onto anyone who blindly trusts anything they read.
HopeOfTheGunblade@kbin.social 11 months ago
Listening to Peter talk about GPT as if it was an all comprehending oracle when he was interviewed on Hannah Reloaded was unsettling, because I know he's not alone in thinking it's (paraphrased) "a pattern detecting intelligence, that can see things we can't" my brother in Christ it is a better Markov chain engine.
middlemanSI@lemmy.world 11 months ago
it’s “AI” not AI…
FaceDeer@kbin.social 11 months ago
The term "artificial intelligence" has been in use in this field for a very long time now, applying to a broad range of techniques. Some of them much, much more primitive than the LLMs and such that are revolutionizing the field currently. There is nothing wrong with using AI to refer to them.
autotldr@lemmings.world [bot] 11 months ago
This is the best summary I could come up with:
Following disappointing quarterly earnings results by Microsoft and Google owner Alphabet, Reuters reports that AI-related companies lost a whopping $190 billion in stock market value.
Microsoft may have eked out a win, with the promise of AI services convincing investors, but even its stock dropped by 0.7 percent in extended trade, per the report.
Google’s parent company fared much worse, dropping 5.6 percent after missing ad revenue expectations.
Microsoft beat Apple by becoming a $3 trillion company earlier this month, a massive vote of confidence for its doubling down on the tech.
According to Deutsche Bank strategist Jim Reid, the downturn may be “signaling some overextension of the recent strong rally,” according to a note seen by Yahoo Finance.
“This knee-jerk reaction [to tech results] is noise, the AI revolution has started,” Wedbush analyst Dan Ives told Yahoo Finance.
The original article contains 331 words, the summary contains 139 words. Saved 58%. I’m a bot and I’m open source!
assassinatedbyCIA@lemmy.world 11 months ago
Thank god the bubbles finally starting to burst. I am tired of hearing about ‘AI’.
herrcaptain@lemmy.ca 11 months ago
Right??? I swear every damn app is trying to shoehorn in some sort of AI nonsense just to hop on the bandwagon.
deweydecibel@lemmy.world 11 months ago
A lot of them aren’t actually implementing anything, they’re just changing words on their product description.
Like a spell checking addon suddenly rebranding itself as “AI”.
From the very start of all this, it never made sense to call any of this “artificial intelligence”, but that marketing stuck, and now we’re trying to retroactively apply it very basic things like text suggestion, further diluting the meaning of the term.
FaceDeer@kbin.social 11 months ago
You're not going to stop hearing about AI. Perhaps AI companies won't be so high-profile, but AI itself is being integrated into lots of things and it's not going to go away. The only thing that's happened here is that it's proving to be not quite so profitable as expected being an AI-specific company.
FiskFisk33@startrek.website 11 months ago
Nobody thinks generative ai will die, but when the bubble bursts maybe we wont get it shoehorned into places it really doesn’t belong.
CustodialTeapot@lemmy.world 11 months ago
AI isn’t new. Algorithms “are” ai. All apps always used it. But it’s changed from algorithms to AI.
frezik@midwest.social 11 months ago
I don’t see it where it’s part of a broader stock market trend. Sp500 is up 1.25% today, 1.52% for the past 5 days, and 4.74% for the last month. Those are spectacular numbers (for people with stock market portfolios).
AI crashing in its own little corner is fine by me.
ShepherdPie@midwest.social 11 months ago
I don’t think that’s necessarily true. We aren’t hearing about “blockchain,” “crypto,” or “NFTs” every day anymore either even though they all still exist.
eltrain123@lemmy.world 11 months ago
The current state of AI development is going to cost a ton of money until its maturity. Any company that is in “AI” right now is either intentionally spending billions of dollars to solve AGI, which will ultimately open up trillions in marketplace solutions, or is using the press to market fledgling AI “solutions” or “integrations” with fancier versions of narrow AI.
AGI is in its infancy and is progressing on an exponential curve. The first time anyone heard of ChatGPT was 14 months ago and , with proper prompting, it’s already easy to use to write college level essays and is passing higher education tests like SAT, GRE, medical exams, CPA certifications, and the bar. Think of what will. Happen when it hits its toddler stage, let alone adolescence or maturity.
Any way you look at it, the days of hearing about AI are just starting and it will dominate the press in the next decade.
MonkderZweite@feddit.ch 11 months ago
Lol, no, AGI is another field entirely. They make the tools an AGI could use someday.
jacksilver@lemmy.world 11 months ago
LLMs don’t really fall under AGI, they’re still static statistical models. Some RL algorithms might be on the track of AGI, but I’m not sure about that.
iAvicenna@lemmy.world 11 months ago
or we might be failing to understand severe limitations with this model which would ultimately reach its ceiling very short of anything that can reason
GenEcon@lemm.ee 11 months ago
Of course its a hype right now. But at the same time AI improved my daily working live in the past year so much! I can outsource a lot of annoying tasks to AI and focus on the more creative tasks and everything strategic.
Passerby6497@lemmy.world 11 months ago
Can you expand on how AI improved your workflow? The only positive experience I’ve had with AI has been Githib’s copilot in my VS Code instance. All the other ai interactions I have are pretty terrible.
VampyreOfNazareth@lemm.ee 10 months ago
Artificial Insemination 2024