Journal of Other Forum Analysis (Volume II, Issue 2)

[JoeBoy101]

I hadn't seen this thread, these people are so retarded

https://www.resetera.com/threads/signs-that-the-ai-bubble-is-popping.1276671/



 

the "AI bubble" is speculative investment in growth, programming, LLM training, research, and implementation

the people working at these places are in high-end tech development and marketing, not the consumers who are typing prompts

there isn't some massive bubble of employees out there who have been hired to type prompts

when it pops there will be a lot of researchers and marketers out of jobs, but they can make lateral moves to other industries...the tech and the prompters will remain (like how the dot com bubble bursting didn't suddenly destroy all websites)

Can someone explain to me what the AI bubble even is? I lived through the Dot-Com bubble burst after 2000 and banking crisis in 2008 driven by home loans. Both of them are fairly straightforward to grasp.

In the Dot-Com bubble, companies were being market capitalized far outside their assets and balance sheet. Everyone was joining tech firms then, and all it took to get investors throwing a couple of million in your direction was to have a ponytail and say ‘e-commerce’ (with respects to Scott Adams). And when the market corrected, it corrected 90% of them right in the nuts.

For the Banking Crash in 2008, you had banks giving out subprime mortgages to any kind of buyer, regardless of credit, and their eyes glazed over if you said ‘flip’. The math on mortgage-backed securities didn’t line up when owners started defaulting when they overspent on their houses and the banks started eating those defaults. That all caused brokerages to dump MBS’s, tanking the market and sending banks crawling to the government, i.e. too big to fail.

(Benji, feel free to correct me on any of this.)

What exactly is the AI bubble here, aside from ERA not liking it? Plus, ERA please note on the previous bubbles that it did not end e-commerce or tech companies and it didn’t eliminate private ownership of homes.