Comment on A tangled web of deals stokes AI bubble fears in Silicon Valley
Sxan@piefed.zip 1 day agoAI (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.