My pet theory about why Anthropic and Open AI are pushing for a “pause” is because they are trying to angle for a government bailout before their bubbles pop.

  • terranoid@lemmy.cafe
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    2 days ago

    I seriously was going to sell my Nvidia stock thinking the signs are here, but when I thought about it… They might drop a bit but they’ll recover strong probably. They were a profitable business before this.

    • Ludicrous0251@piefed.zip
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      2 days ago

      (This is not investment advice just one Rando’s opinion on the Internet). Nvidia will not go bankrupt after this, but their current (IMO, inflated) valuation is based on the assumption that their sales will continue to grow at current rates.

      If the demand drops out and the market is flooded with surplus stock, their sales will not maintain current levels, which will spook investors. They should have more than enough cash on hand to weather a pretty big storm, and likely maintain their market lead but their stock price is not immune to the bubble burst.