Can you explain? I fail to see how the American economy is dependent on AI-hype. AI-hype is here, yes, but if it ceases to exist tomorrow, nothing would change on the big scale.
Companies like Nividea, who are turning huge profits right now because of demand from AI, are the main bright spot in the stock market right now.
OpenAI, with just 3000 employees, is “worth” $300-$500 billion right now, while losing $5 billion a year and is still without profitability even on the horizon. It’s hard to say if they’ll ever figure out how to monetize it and how much it will be worth at that point.
These are big big numbers and if the AI hype died overnight, so would a lot of the stock market.
Also look at all the mass-firings in the tech industry. Many of them are argued with AI being able to replace the workers, even though this hasn’t been proven. Even non-tech companies argue that way. AI is supposed to increase efficiency and thus you need less people to do the work.
The dot-com bubble at least also came with mass-enployment. I wonder if the burst of the AI-bubble will result in the companies having to re-employ many of the workers they fired…
I fear small to medium sized companies who fall for this will not be able to afford to rehire and they will go under. Leaving only these big monopolies left.
It’s based on a report from Deutsche Bank finical analysts that said that the enormous spending on “AI” is the only reason the US economy isn’t in recession already.
As it was seen in previous crisises (dot-com bubble being the perfect somewhat recent example) - after hype hits its peak - reality of diminishing returns kicks in, and and then it’s up to human nature to start panic, and that will just wreck valuation of companies along the board.
Economy ain’t gonna cease existing, but it will absolutely hurt, when massive amounts of money will just instantly vaporize.
Can you explain? I fail to see how the American economy is dependent on AI-hype. AI-hype is here, yes, but if it ceases to exist tomorrow, nothing would change on the big scale.
Companies like Nividea, who are turning huge profits right now because of demand from AI, are the main bright spot in the stock market right now.
OpenAI, with just 3000 employees, is “worth” $300-$500 billion right now, while losing $5 billion a year and is still without profitability even on the horizon. It’s hard to say if they’ll ever figure out how to monetize it and how much it will be worth at that point.
These are big big numbers and if the AI hype died overnight, so would a lot of the stock market.
Also look at all the mass-firings in the tech industry. Many of them are argued with AI being able to replace the workers, even though this hasn’t been proven. Even non-tech companies argue that way. AI is supposed to increase efficiency and thus you need less people to do the work.
The dot-com bubble at least also came with mass-enployment. I wonder if the burst of the AI-bubble will result in the companies having to re-employ many of the workers they fired…
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I fear small to medium sized companies who fall for this will not be able to afford to rehire and they will go under. Leaving only these big monopolies left.
It’s based on a report from Deutsche Bank finical analysts that said that the enormous spending on “AI” is the only reason the US economy isn’t in recession already.
As it was seen in previous crisises (dot-com bubble being the perfect somewhat recent example) - after hype hits its peak - reality of diminishing returns kicks in, and and then it’s up to human nature to start panic, and that will just wreck valuation of companies along the board.
Economy ain’t gonna cease existing, but it will absolutely hurt, when massive amounts of money will just instantly vaporize.