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Ed Zitron
@edzitron.com

Free newsletter: In July, Apollo Economist Torsten Slok said that "AI better work out, or we have a problem." Facing ever-growing high-interest debt, negative-EBITDA AI labs and $200bn+ in warehoused GPUs, that's exactly what the AI industry has. www.wheresyoured.at/ai-had-bette...

wheresyoured.athttps://www.wheresyoured.at/ai-had-better-work-out/If you liked this piece, you should subscribe to my premium newsletter, and you can subscribe on the following links: $70 a year, $18 a quarter, or $7 a month. In return, you get a weekly premium…
Ed Zitron
@edzitron.com

The AI bubble is now a global problem, with the highest ever inflows of foreign capital into US equities in history, at a time when when a handful of AI-exposed stocks account for a terrifying proportion of US stock market's value. www.wheresyoured.at/ai-had-bette...

6 reposts101 likes

Ed Zitron
@edzitron.com

As I've written extensively in the past, the AI bubble is nothing like the dot com bubble. The scale and concentration is different, and a simple 20% correction across the main AI stocks would be worse than the worst day of the Dot Com crash. www.wheresyoured.at/ai-had-bette...

Ed Zitron
@edzitron.com

The AI bubble is sustained by vibes and hype, and both have started to sour, with Gartner saying that we have more compute capacity than demand, and that 80% of neoclouds will go out of business by 2030, adding there's not enough revenue to justify them. www.wheresyoured.at/ai-had-bette...

Bill Stewart
@billstewart.bsky.social

How much do the AI bubble and DotCom bubble differ in terms of capital vs jobs? While the DotCom boom was burning VC money rapidly, most of that money went to paying workers (and their landlords), and some of it to web-scale data centers. AI seems to have much more capital and many fewer workers.

DeathOfASailboat
@deathofasailboat.bsky.social

People missing the forest! This bust will be bad for more than investors. The big tech guys are licking their chops to buy up the frontiers for pennies on the dollar. Consolidation of AI at the very top. Bad for everyone

Green
@gotist.bsky.social

I am far from having a good understanding of economics, but I could of sworn there was a lesson in high school about not putting all your eggs in one basket.