• BilSabab@lemmy.world
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    12 days ago

    But what will be left after it bursts? At least in cause of the housing bubble - the houses existed physically - what will be after the AI crash? Lots of spare gear sold for cheap?

    • commander@lemmy.world
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      11 days ago

      The s&p 500 tanks a ton and banks call on loans from these AI hyped companies using the price of the stocks as collateral (previously expected to rise). Credit crunch and now companies tighten the belts even further so higher unemployment again. Federal funds rate gets slashed and those that can manage steady good work during the recovery years will be fine. Everyone else will be struggle busing as usual

    • Lucelu2@lemmy.zip
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      11 days ago

      yes, We can’t prevent the bubble burst. We can hope it happens sooner rather than later but the bubble is baked in. So what companies and individuals can to is basically buy up their detritus at bargain prices. And then use them to make better, more solid companies that do not require $3T investment while showing no fucking profit.

      • BilSabab@lemmy.world
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        11 days ago

        it’s kinda funny how all these massive business are all giant money drains year after year after year. back in the day business people used to pride themselves being in the black.

    • rafoix@lemmy.zip
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      11 days ago

      But what will be left after it bursts?

      Affordable GPUs? Less pushy AI commercials?

      The wealthy will just move on to the next thing to inflate. Capitalists don’t work. They don’t care about anything other than ROI.

      • KeenFlame@feddit.nu
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        11 days ago

        These valuations cannot be tied to ROI, even using Olympic level mental gymnastics. The market would collapse in a millisecond. They are tied to a fictional dimension 78 years in the future where everyone decided to work overtime without collapsing and being four times as focused while the planet magically starts healing itself and no major disaster happens and all wars escalated without destroying any infrastructure or upsetting any populations and the authoritarian revenge hypercapitalist disasterpiece currently boiling over in the global standard host country suddenly is unanimously accepted as a new way of life without a single adverse reactions or any systematic issues and a spontaneous miraculous salvation from the diseases and famine it has maliciously developed due to the Christian god both existing and subscribing to the polar opposite moral and ethical alignment that the elite privileged promille has hallucinated to fit a reality that also somehow pivoted from a complete mass psychosis into firm truth by way of some unforseen quirk in the laws of physics that every great mind and scientists missed that magically flip childish commercial folly into concrete reality without requiring effort and being the first consciousless entity to achieve autonomy and an ability to replicate exponentially without consuming resources and a renneissance of unity appears around a unilateral decision to kill brown skinned people that agree to live and reproduce in the most efficient manner for the single purpose of feeding that slaughtering machine and producing goods and resources for the machine and for the now sanctioned debauchery that the new religion has prescribed all of our species to perform

        Which as you might imagine is more than a little stretch

      • BilSabab@lemmy.world
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        11 days ago

        I don’t think they care about ROI for real. If they cared none of that would’ve happened because that’s just not how a real businesses are operating. You can burn the investments into R&D to an extent but if the product’s money flow doesn’t show a positive dynamics long enough - you get ready for some soul searching shit. My guess is that a lot of things contributing to AI bubble have something to do with money laundering.

    • InputZero@lemmy.world
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      12 days ago

      What was left after the cryptocurrency crash? A whole lot of GPUs that got repurposed for AI. They’ll just get repurposed for whatever extremely computationally intensive thing some computer engineer comes up with. Until that bubble bursts, rinse and repeat. What’s happening is project managers are selling the next big thing to make a lot of capital really quickly to a board of directors.

      • mojofrododojo@lemmy.world
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        11 days ago

        They’ll just get repurposed for whatever extremely computationally intensive thing some computer engineer comes up with.

        these are for AI, purpose built bespoke solutions to LLM problems. they’ll age like fine piss.

      • zbyte64@awful.systems
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        11 days ago

        Where does the capital come from though? Someone has to pay for the shovels and if there isn’t a profit now, how will they pay for the next bubble?

        • InputZero@lemmy.world
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          11 days ago

          The capital comes from the profits from other markets. Which comes from exploiting workers. The original investment didn’t just spontaneously expose itself, people chose to flow money into it. They’ll pay for the next bubble with the profits C-suit executives stole from their workers and the little guy. They will take what should have been yours and bet it away on some fever dream that was doomed to fail from the beginning. All in the hopes that they might make their wealth get more outrageously excessive before this bubble bursts and they try again on the next.

      • BilSabab@lemmy.world
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        11 days ago

        There sure are but will there ever be a real chance to attract sober investors to make it work as a real business and not growth hacking extravaganza any time soon?

        • KeenFlame@feddit.nu
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          10 days ago

          Sober investors, what do these have as a choice? As if there are “safer” alternatives like raw materials? Are these investors in the room with us now? The stock market is disconnected from the real world and when a bubble pops it has exactly nothing to do with roi or income or success of anything underlying the labels on these casino icons. It has to do with hedge fund algorithms. And those are set to full burn because there will never be a bad day (it’s delusional)