When people say the AI bubble will burst, what exactly does that mean?
When people say the AI bubble will burst, what exactly does that mean?
I see lots of talk on Lemmy about the AI bubble bursting. That AGI isn’t going to happen in the near-term, maybe it won’t ever happen. And so the the AI bubble will burst; ala the dot-com bubble.
But what exactly will burst? OpenAI and Claude? Those are private companies so maybe they will downsize or merge, but that’s not a bubble? NVIDIA & Microsoft? I don’t really see those companies imploding. They have a pretty large and diversified customer base. Besides, Apple and AWS are already moving away from NVIDIA by making their own hardware. I genuinely don’t understand where the big implosion is. Can someone help me understand this?
ETA: Is there an example analogous to pets.com for this AI bubble?
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Back when Blockchain was first a huge hype bubble, there were companies that added "Blockchain" to their name, or announced a pivot into Blockchain tech, and watched their stock value soar by a few hundred percent (with market value being many times their revenue).
I had googled a list of news articles, until I found this:
https://www.sciencedirect.com/science/article/abs/pii/S0165176519301703A noteworthy example: https://www.cnbc.com/2017/12/21/long-island-iced-tea-micro-cap-adds-blockchain-to-name-and-stock-soars.html
Anyway.
That's the bubble.
Over-valuation. People taking advantage of the hype. People jumping on any opportunity to "not be left out" or to "get in early".AI has uses.
Everyone is throwing things at the wall to seeing what sticks. Not much of it will.
Marketing are capitalising on the hype.