There are fresh signs that the AI boom is wobbling. Again. In recent weeks, a much-vaunted AI focused hedge fund run by Valley wunderkind Leopold Aschenbrenner lost $35 billion dollars. South Korea saw its largest-ever stock market collapse as investors pulled bets on AI chips. Due to a fresh series of moratoria and political opposition, the future of the massive data center buildout has never looked more uncertain. The US markets have dipped and boomed, dipped and boomed.
No.
No way it corrects before Anthropic/OpenAI IPO. Doesn’t matter what financial physics dictate, the forces at play will not allow it until the bag is handed off.
I completely agree, no matter how much I want Zitron to be right.
Chances are you’ve already seen Ed Zitron commenting on the AI bubble.
I’ve seen dozens, but despite that, this had new angles I had not seen before, and it’s absolutely fascinating to see this play out in real time IMO.If you combine the content of this video with the other one I just put up by Asian Dad Energy, it should be clear you’d have to be a very daring investor to get anywhere near anything AI.
AI trade came over to me. I’m considering changing my 401k into a money market until this pops
Definitely think there’s some things to consider there. But I also wonder what the knock on effects for other asset classes will be like MMFs. Still, stonks (esp AI related, which has a fair weight in index funds) are probably not going to be great to hold when it does crack
Honestly, I don’t feel comfortable with stocks currently. But 100% I won’t touch anything AI related.
When AI starts to deplete our drinking water— the shit our entire race needs to survive— I HOPE it’s on its way out. Because that’s what’s happening. Fuck.
Sadly markets can remain irrational longer than you can remain solvent. Just look at Tesla
A better example would be Russia. Their market should be an absolute free fall yet they’re still being propped up somehow.
Somehow Putin returned
Exactly, which is why I don’t short.
Really good video, quite enjoyed it, had to stick it on and not watch the video though because the audio is slightly off sync. Was a great listen anyway.
OK I didn’t notice any sync problem myself. But I am also not very focused on the video part.
Glad you enjoyed it, I thought it would be a good fit for this sub.It wasn’t that bad, maybe half a second delay of the video behind the audio, at least when I was watching it on my phone through the browser. Juuuust enough delay to trigger my brain to feel very uncomfortable.
I agree it’s a pain to watch when it happens, and it can reduce the ability to focus a lot IMO.
Definitely, that’s why I just sat my phone to the side and listened to it while I did dishes.
He’s been warning about the bubble popping for as long as AI boosters have been saying “AI is going to keep improving; this is the worst it will ever be.”
Not sure what the savvy investor can do with their total market index IRA that’s not trying to “time the markets”.
It isn’t going away. Doesn’t matter if you love it or hate it, it isnt going anywhere.
It will change, it will evolve. It will probably become efficient like old american v8s transformed from the mainstay and since have given way to 4cyl hybrids.
But it isn’t going away.
It surely isn’t, but my bet is it will migrate off the cloud, on prem. A lot of free models can do a good enough job on a local server.
