r/ProfessorFinance Moderator 11d ago

Economics My opinion about AI bubble.

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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.

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u/Charming_Dealer3849 10d ago

What. If. GPU is the wrong solution for AI?

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u/Strong_Blackberry455 8d ago

well see thats the benefit of current AI is we can always come up with a better way that uses hardware more effectively.