Holy **** we're in an AI bubble.

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Alxndr 12 hours ago

I know the world bubble gets thrown around a lot on the internet but I genuinely believe the bubble is real and will come crashing down to reality eventually. When that is I don't know.

Nvidia which was already valued at $4.8trillion, went up 5% yesterday, now today in pre market it's up another 3.3% so before the market has even opened it's up another $165billion.

And it's not just Nvidia, but every AI company is getting unlimited funding, sky high valuations. OpenAI now valued at $500billion and it doesn't even make a profit yet.

Anthropic, valued at $200billion, isn't making a profit.

Tesla, valued at $1.5trillion, PE ratio of 240x.

The list goes on.

Obviously there will be winners and there will be losers, only time will tell but it's getting to that stage now where any company that says "AI" is getting funded.

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Showing 1-15 of 72 comments

lailaamell 12 hours ago

Originally posted by Alxndr:
I know the world bubble gets thrown around a lot on the internet but I genuinely believe the bubble is real and will come crashing down to reality eventually. When that is I don't know.

Nvidia which was already valued at $4.8trillion, went up 5% yesterday, now today in pre market it's up another 3.3% so before the market has even opened it's up another $165billion.

And it's not just Nvidia, but every AI company is getting unlimited funding, sky high valuations. OpenAI now valued at $500billion and it doesn't even make a profit yet.

Anthropic, valued at $200billion, isn't making a profit.

Tesla, valued at $1.5trillion, PE ratio of 240x.

The list goes on.

Obviously there will be winners and there will be losers, only time will tell but it's getting to that stage now where any company that says "AI" is getting funded.

Ai makes shareholders happy the consumer matters very little in corprate for ppl will buy either way

Rumpelcrutchskin 12 hours ago

This is what actually happens with tech companies and AI bubble, it`s all one big circle of empty air and deception:

https://www.youtube.com/watch?v=h3JfOxx6Hh4

Triple G 12 hours ago

The nice thing on money and values is that it all depends on trust. But worry not - if any bubble bursts, it´s usually the tax payers who pays the bill. "We all have to have a look at our spendings, and times are tough. Don´t ask what the country can do for You - now it´s the time to ask what You can do for Your country. Work harder."

Apollo702 12 hours ago

Many here were not of age when a bubble burst in 2008.

It was a bloodbath.

Alxndr 12 hours ago

Originally posted by Triple G:
The nice thing on money and values is that it all depends on trust. But worry not - if any bubble bursts, it´s usually the tax payers who pays the bill. "We all have to have a look at our spendings, and times are tough. Don´t ask what the country can do for You - now it´s the time to ask what You can do for Your country. Work harder."

A stock market bubble isn't the same as a financial bubble though. The housing bubble destroyed the economy and millions lost their jobs and homes. But the dotcom bubble only destroyed worthless companies that didn't make any profit to begin with.

If the AI sector crashes, it'll still be totally fine for 99% of people, nothing will really change. Except for the people that are investing in these companies.

Last edited by Alxndr; 12 hours ago

Alxndr 12 hours ago

Originally posted by Apollo702:
Many here were not of age when a bubble burst in 2008.

It was a bloodbath.

Read my comment above.

Apollo702 12 hours ago

Originally posted by Alxndr:
Originally posted by Apollo702:
Many here were not of age when a bubble burst in 2008.

It was a bloodbath.

Read my comment above.

Oh I did- and I have lived through each of these recessions/crashes/depressions.

I fear that this one will be the worst- and yes, you did nail the overvaluations.

When the financial markets and the economy get this untethered, there is only one possible outcome.

It has never not happened.

Chaosolous 12 hours ago

https://gtm.steamproxy.vip/sharedfiles/filedetails/?id=3586581523

lailaamell 12 hours ago

Thing is ai is something shareholders love hell they even invested in ai pens

Nomad 12 hours ago

We don't care about the value of the worthless shares. We only invest because we need AI so we can scale down our employee base and optimize our businesses. That's where the money is.

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Alxndr 12 hours ago

Originally posted by Apollo702:
Originally posted by Alxndr:

Read my comment above.

Oh I did- and I have lived through each of these recessions/crashes/depressions.

I fear that this one will be the worst- and yes, you did nail the overvaluations.

When the financial markets and the economy get this untethered, there is only one possible outcome.

It has never not happened.

But the only value lost during a stock market bubble is the money people have invested. People's jobs and homes are still going to be there.

But in the mortgage / housing bubble, people had their jobs but could no longer afford to pay their inflated mortgage rates once the sub prime interest rates kicked in. So everyone was losing their homes which banks were using leverage against, this caused the banks to collapse in turn.

It was a cascading effect. As long as the bubble in question doesn't directly affect a persons ability to pay for daily life, everything will continue as normal. Most of the AI start-ups with 200 employees will die, the big dogs will shed thousands of jobs but in general, most people won't even notice a crash is even occurring in my opinion.

Last edited by Alxndr; 12 hours ago

#11

lailaamell 12 hours ago

Originally posted by Nomad:
We don't care about the value of the worthless shares. We only invest because we need AI so we can scale down our employee base and optimize our businesses. That's where the money is.

Wich is good soon enough ai can do all jobs but when you sorta hit an issue if no one can be employed who will buy stuff

#12

Apollo702 11 hours ago

Originally posted by Alxndr:
Originally posted by Apollo702:
Snip

Snip.

The only thing is that "financial" crashes rarely stay financial.

It is true that the tech industry in terms of value vs. job numbers may be the lowest of them all.

The problem is, when one market goes down, it tends to start a chain reaction. A prime example of this was in 2008 when the housing market spread to the banks, the stock market, the insurance market, the commodity market... and and and...

Then with a wave of sell-offs, things like the money market seized up- and that started a liquidity crisis.

Put that many instances together and it spreads like wildfire- even to markets that in theory should not be affected.

#13

Nomad 11 hours ago

Originally posted by lailaamell:
Originally posted by Nomad:
We don't care about the value of the worthless shares. We only invest because we need AI so we can scale down our employee base and optimize our businesses. That's where the money is.
Wich is good soon enough ai can do all jobs but when you sorta hit an issue if no one can be employed who will buy stuff

There are plenty of jobs people can work and the other nice thing is when the labor market becomes saturated, it becomes cheaper to use manual labor than to use expensive machines.

#14

lailaamell 11 hours ago

Originally posted by Nomad:
Originally posted by lailaamell:
Wich is good soon enough ai can do all jobs but when you sorta hit an issue if no one can be employed who will buy stuff
There are plenty of jobs people can work and the other nice thing is when the labor market becomes saturated, it becomes cheaper to use manual labor than to use expensive machines.

But what if i dont want to pay employes? Ai never gets sick or take a salory and machines will hopefully advance faster to get less need of ppl working also ppl ask for to much in salory nowdays slightly below mimimun wage is enough to live on big issue is there probly wont be enough labor jobs after all you want as few employed ppl as possible to maximise profit and their pay to be as low as possible i miss when ppl worked free overtime like good old days

Last edited by lailaamell; 11 hours ago

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Date Posted: 29 Oct @ 2:09am

Posts: 72

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