alt Hacker NewsI think this is reality-distortion field rivaling that of Jobs', and a crisis of faith. Nobody apparently believes that capital is worth investing into anything but AI.
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OpenAI is making $24b a year. It's a 32x revenue multiple. High, but not insane. Spinning this as a story of overinvestment doesn't make sense.
I wonder what is not getting invested in bc AI has been crowding out everything else since 22.
It has to be brutal out there for everybody else, if all the money is going to AI.
But they're really cagey about actually handing money over to them today
That's the tao of hyper-financialization. It must keep growing irrational exuberance big and up forever like stonks or it bursts like DotCom and tulip mania. It's funny money that cannot be liquidated for real value for more than a tiny fraction of the imaginary trillions being thrown around. Similarly, Nvidia $4T mkt cap makes absolutely no sense when it has but a few incestuous customers-parters-investors throwing around tens of billions each per year devoid of fundamentals like essential service offerings that turn a profit. Those handful of whale customers will make their own chips or cease buying large qtys at any time.
It's the result of too much echo chambered bullshit floating around daily about how capable LLMs really are. It's literally crypto/blockchain all over again. It's one big lie that a lot of people have bought into which causes it to self-perpetuate, like religion.
> Nobody apparently believes that capital is worth investing into anything but AI.
This is the main reason we see this insane investment into AI imo. If you imagine having lots of money, where should you invest that currently?
Housing market: Seems very overvalued (at least in germany). Also with the current uncertainty and inflation its hard to make an investment that pays back over 20-30 years. So building is also difficult.
Stocks are very volatile currently. Not only since Iran. To me it seems since the financial crisis 2008 investors don't enjoy stocks as before.
Gold: Only if you are paranoid about collapse of society. It doesn't make sense to invest into s.th. without interest rates.
Crypto: Same as gold, but better if you like gamling. I would assume most people who are very rich don't gamble with most of their fortune.