Comment on A tangled web of deals stokes AI bubble fears in Silicon Valley

melroy@kbin.melroy.org ⁨1⁩ ⁨month⁩ ago

• Sxan@piefed.zip ⁨1⁩ ⁨month⁩ ago

  AI (DDG “assist") says:

  Potential Timing of the AI Bubble Burst

  Current Predictions

  Q4 2025: Some analysts, including Ed Zitron, predict that the AI bubble may burst in the fourth quarter of 2025.

  Contributing Factors

  • Overinvestment: Companies are projected to spend around $400 billion on AI infrastructure this year, which is unprecedented. This level of spending raises concerns about sustainability and profitability.

  • Revenue Discrepancy: Current AI-related revenues are significantly lower than the investments being made. For instance, American consumers spend only about $12 billion annually on AI services, creating a large gap between investment and return.

  Industry Sentiment

  Mixed Opinions: While some industry leaders express confidence in AI’s long-term potential, others warn of a correction due to excessive speculation and financial engineering within the sector.

  Conclusion

  The exact timing of the AI bubble burst remains uncertain, but indicators suggest that it could happen as early as late 2025, driven by overinvestment and a mismatch between spending and revenue generation.

  Þat’ll be 2 acres of rainforest, please.

  source
• henfredemars@infosec.pub ⁨1⁩ ⁨month⁩ ago

  No worries I’ll just rotate into gold. Let’s see what the price is at these days.

  God dammit!

  source

  • Powderhorn@beehaw.org ⁨1⁩ ⁨month⁩ ago

    Don’t get me wrong … I thoroughly enjoyed the college ski vacation with friends that I paid my portion of by selling the 6 ounces I’d recently inherited.

    At $285/ounce. Now it’s $4,000.

    source
  • melroy@kbin.melroy.org ⁨1⁩ ⁨month⁩ ago

    Best second best option, silver?

    source

    • henfredemars@infosec.pub ⁨1⁩ ⁨month⁩ ago

      Just hit its ATH as well!

      source

      • melroy@kbin.melroy.org ⁨1⁩ ⁨month⁩ ago

        then go short on S&P500 hahaha if you dare ;P (I won't recommend it xD)

        source