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pj_mukh | on: I'm not convinced the AI bubble exists
I dont know if the valuations make sense, but the usability is all there and so are the potential profits. Over a decade, that's probably all that matters. If the valuations pop or dip (anytime soon), I think that's mostly irrelevant. I get that the press probably doesn't like to hear this boring conclusion.

P.S: A Matlab/Physics simulation guy running for a Liberal party seat in Canada? Say more!

wongarsu | parent | next
The decade after the dotcom crash brought about as many if not more long-term successful products as the dotcom boom: Youtube, Reddit, Spotify, Google Maps come to mind

A bubble that funds all kind of crazy ideas and big investments into infrastructure work is great for laying the groundwork. But the end of the bubble won't mean the end of progress, or even necessarily a slowdown in progress

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clbrmbr | parent | next
indeed, very happy to see scientifically minded folks running for office.
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ilovecake1984 | parent | next
Is the usability all there? I just don’t see it at the moment.
amluto | parent
The usability and potential profits of housing were there in 2007 and 2008, too.
xboxnolifes | root | parent | next
In 2007, It was regular people who lost their homes and their leveraged investment properties. Regular people are not leveraged into AI startups today. If the AI bubble pops, regular feel people will feel the direct financial consequences significantly less than the '07 housing crisis.
agent_turtle | root | parent | next
> Regular people are not leveraged into AI startups today

this isn't accurate. as an example, anyone with a 401k will be affected by the stock market and the stock market is mostly tech, and tech has bet the house on ai

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grey-area | root | parent | next
Unfortunately, they are, the market (even the global market) is heavily concentrated in just a few US listed companies, and other indexes closely track US indexes. A crisis in AI would impact everyone.

For proof, look at the fall in VWRL last week correlated with concerns over AI which hit nasdaq.

amluto | root | parent
> In 2007, It was regular people who lost their homes and their leveraged investment properties.

And the debt on which these owners defaulted had been converted into CDOs and mortgage-backed securities, it was financial institutions and investors who lost enormous amounts of money on these.

Today there are GPU-backed securities and compute futures that are helping back all the debt that is financing the datacenter boom. Maybe it’s a bubble, maybe it’s not a bubble, but either way I think its parallel to 2007.

pj_mukh | root | parent
And the valuations made no sense in 10 yea....oh.