AI investment has helped keep markets and economic growth ticking along, but the IMF fears the boom could quickly turn to bust if the promised profits fail to materialize. With tech giants borrowing billions and investors piling into the same handful of companies, a selloff could leave more than just Silicon Valley nursing a hangover.
If so, the technobros did this. The technobros should receive most of the consequences. There should be dire consequences but we all know who will receive most of that. The system is broken.
in a sane world. in this world, where the system is working as intended, tech bros will reap rewards at our expense. hopefully the working class response will be of a scale commensurate with the scale of the injustice.
I’ll stand with you! ✊
Sorry. The techbros will get bailouts. Its the pensioners that will starve.
It’s the pensioners who made most of the money from NVDA and MU price graphs going vertical anyway. Friendly reminder that people over 55 own 73% of the US, much of it via index fund based retirement funds and such. Isolating just the boomers, they own 8x more wealth than billionaires (though there’s a fair bit of overlap of course, with a lot of billionaires themselves being boomers). Total over 50% of the US (including everything from cash to real estate to stocks) is owned JUST by the boomer generation.
Which is not to say the techbros aren’t the problem, but in absolute dollar amounts, they’re not actually the biggest beneficiaries - only per person did they make more money off this. Not as a class.
*Techbros
Techno-bros raving at the club
you will have to dish out those consequences otherwise it won’t happen.
“Greedy shitbag tech bros pushed it. Greedy shitbag investors threw every penny at it. So whoops, the whole world is held hostage. Sorry fuckos, you, John and Jane public, are going to pay to save the global economy. Greedy fucksticks aren’t allowed to lose.”
…can’t wait.
if the promised profits fail to materialize.
What profits? Nobody has money to spend and llm companies lose money on $200/mo subscriptions.
They lose money on those $200 a month subscriptions, but e.g Anthropic won’t let you use the sub outside of Claude Code, so for anything that would use their API, $200 gets you less usage than one 5-hour session of that subscription.
Which doesn’t stop them from losing a bunch of money to training though
don’t stop, i’m so close
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It’s not just sustainability. Dicks who think they can rule the world need a reminder of thier mortality.
The economy as it stands is a house of cards built on promises no one keeps but enough people believe.
I have never claimed to be an expert on anything but the moment you let the fate of something rest on the guess of how much it will cost if everything goes the way you think it will, when the other half of the room hope it goes the other way seems mad.
Yeah the “business” tycoons do that every decade or so. Some busts are bigger than others. Not much any of us can do about it unless we tax the hell out of corps and wealthy so that they can’t build enough self serving shit to then dump the economy once they’ve scraped as much money as they can in the current cycle.
I’m convinced at this point the goal is to just not use money. Why do we have to be tied to this shitty fiat currency that isn’t directly tied to physical worth?
Yep, that’s the point at which people will recommend gold (which I’ve never trusted, either) or real estate so you’re not homeless when everything goes poof.
please.
Could???
Find out by tuning into the next season of The Economy!
COVID took the global economy with it.
Losing AI would be like… I don’t even know, insignificantly small compared to that.
If AI up and disappeared tomorrow when I clocked into work, it might actually make my job easier. I could be even more productive without having the slop floodgates open every day.
Burn it all down!
Let’s hope so!
If profits are what will make it fail. It is going to fail. They need everyone to subscribe to their premium tiers at this point.
Wouldn’t matter. The cost to execute the tokens is greater than the subscription. It’s all VC funds that they’re burning every day. It’s inevitable to fail unless they can convince every day users to pay $2k a month
I’d pay them 2k a month for every month they pay me 10k for. Ofc I need to be paid first because otherwise I won’t have the money to pay them and still comfortably live.
No that’s kinda the point. If AI charged for actual cost, no one could afford it. It’s all subsidized now. Basically a money shredder
I know, I was making fun of them by suggesting a “give me your money and then I’ll give you some of my money”-circlejerk because that can never be sustainable in the long run.
API costs start to approach the operating costs of these systems. The ultra premium subscription tiers still lose money.
Tech has high market value because there’s the potential for growth, and the cost to grow is minimal after the initial startup costs. Adding a subscriber to a newspaper costs, say $0.20 for each subscriber; adding a Facebook user has a cost approaching zero as the user count grows. The problem with GenAI is that the inference cost grows linearly with usage, and the constant creation of new models means the training costs are also not recouped.
The debt the datacenter builders are taking on are being traded as junk with high interest rates already, and they’re going higher. They’ll never generate the income that the rates demand much less recoup the cost of building.
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Good.
