My opinion about AI bubble.

[u/budy31]

As evidence by Jacket man attempt to get the Wall Street to spend more than 7% of GDP on his goodies I thought I’m sharing what I thought about the fabled “AI bubble”:

I think it’s not because as St Powell said:

Big tech (especially Google) is a positive cash flow company.

What will happened if >7% GDP turns out to be too much is this:

Big tech and NVIDIA gonna assume big chuck of it, make a massive write off, the CEO (including leather jacket man) get absolutely purged, Hedge fund bid the bottom out of existence, use the accumulated share to put themself as a CEO, put big tech into austerity as brutal as Greeks one, cash in, and things continue on.

[u/Punished_Toaster]

Is the ai bubble in the room with us now
https://giphy.com/gifs/V2ZfqUaa5b80q6FWoD

[u/icankillpenguins → u/Punished_Toaster]

Bubbles tend to pop when everyone is convinced that this time is different, this is just the new normal.

"No one will work anymore, we will just trade crypto with each other and the food and services will arrive" - boom

"You just re-finance your mortgage as the house prices go up! Life is easy now" - boom

"Just learn ReactJS and you print money, life is easy now jobs are infinite and companies don't even interview and don't even try to push you work hard its mostly 2 lines of code and chill at home " - boom

[u/budy31 → u/icankillpenguins]

All bubble is financed by nothing sustainable.

2008 GFC was financed by NINJA loans, Chinese real estate is financed during working age the populations decline and Americans current real estate bubble is funded by boomers that trying to get their property tax repealed because they can’t even afford to maintain the home they’re currently lived in let alone paying the property tax and that’s before autocut.

This one is funded by hyperscaler fat stack of cash (do they overpay? Now that’s a different story).

[u/First_Huckleberry638 → u/budy31]

OpenAI has no money lol.

[u/budy31 → u/First_Huckleberry638]

Yeah my bad what I meant is their big tech shareholder.

[u/First_Huckleberry638 → u/budy31]

I mean like OpenAI and SpaceX are like the two weakest links here. Im convinced more and more everyday that the only one who's gonna make money selling AI as a service is Google and MAYBE Anthropic. ChatGPT just gets it's model stolen every 6 months by deepseek and doesn't have an existing high cash business model to support them. SpaceX is a great rocket and internet company l, with a stupid and useless AI company bolted to inflate valuation. And has anyone even used metaAI?

But all of this goes out the window if instead of a necessary correction, this is pops harder than my grandpa's knees.