Okay seriously this technology still baffles me. Like its cool but why invest so much in an unknown like AIs future ? We could invest in people and education and end up with really smart people. For the cost of an education we could end up with smart people who contribute to the economy and society. Instead we are dumping billions into this shit.
Tech/Wall St constantly needs something to hype in order to bring in “investor” money. The “new technology-> product development -> product -> IPO” pipeline is now “straight to pump-and-dump” (for example, see Crypto currency).
The excitement of the previous hype train (self-driving cars) is no longer bringing in starry-eyed “investors” willing to quickly part ways with OPM. “AI” made a big splash and Tech/Wall St is going to milk it for all they can lest they fall into the same bad economy as that one company that didn’t jam the letters “AI” into their investor summary.
Tech has laid off a lot of employees, which means they are aware there is nothing else exciting in the near horizon. They also know they have to flog “AI” like crazy before people figure out there’s no “there” there.
That “investors” scattered like frightened birds at the mere mention of a cheaper version means that they also know this is a bubble. Everyone wants the quick money. More importantly they don’t want to be the suckers left holding the bag.
Try asking DeepSeek something about Xi Jinping. "Sorry, it’s beyond my current scope’ :-) Wondering why even it cannot cite his official party biography :-)
I should really start looking into shorting stocks. I was looking at the news and Nvidia’s stock and thought “huh, the stock hasn’t reacted to these news at all yet, I should probably short this”.
And then proceeded to do fuck all.
I guess this is why some people are rich and others are like me.
It’s pretty difficult to open a true short position. Providers like Robinhood create contract for differences which are subject to their TOS.
I think this prompted investors to ask “where’s the ROI?”.
Current AI investment hype isn’t based on anything tangible. At least the amount of investment isn’t, it is absurd to think that trillion dollars that was put in the space already, even before that Softbanks deal is going to be returned. The models still hallucinate as it is inherent to the architecture, we are nowhere near replacing the workers but we got chatbots that “when they work sometimes, then they are kind of good?” and mediocre off-putting pictures. Is there any value? Sure, it’s not NFTs. But the correction might be brutal.
Interestingly enough, DeepSeek’s model is released just before Q4 earning’s call season, so we will see if it has a compounding effect with another statement from big players that they burned massive amount of compute and USD only to get milquetoast improvements and get owned by a small Chinese startup that allegedly can do all that for 5 mil.
You fogot NSFW content, many people are making money using it. There is also AI advertising using fake models, very lucrative business.
I really hope this is the beginning of a massive correction on AI hype.
It’s a reaction to thinking China has better AI, not thinking AI has less value.
Good. That shit is way overvalued.
There is no way that Nvidia are worth 3 times as much as TSMC, the company that makes all their shit and more besides.
I’m sure some of my market tracker funds will lose value, and they should, because they should never have been worth this much to start with.
It’s because Nvidia is an American company and also because they make final stage products. American companies right now are all overinflated and almost none of the stocks are worth what they’re at because of foreign trading influence.
As much as people whine about inflation here, the US didn’t get hit as bad as many other countries and we recovered quickly which means that there is a lot of incentive for other countries to invest here. They pick our top movers, they invest in those. What you’re seeing is people bandwagoning onto certain stocks because the consistent gains create more consistent gains for them.
The other part is that yes, companies who make products at the end stage tend to be worth a lot more than people trading more fundamental resources or parts. This is true of almost every industry except oil.
