alt Hacker NewsYou don’t understand what a bubble is. How good the technology is is irrelevant. That has nothing to do with an economical bubble. It’s all about massive capital misallocation driven by a frenzy of FOMO, which is specifically the case for AI investments. Economically speaking what is happening is the most obvious bubble possible, it follows everything that would be expected from a bubble where companies are chasing an ill-defined grandiose dream, based on a new technology we don’t understand and has very dubious ROI, selling some vague future utopia, allocating massive amount of capital to build infrastructure dedicated to a very early versions of that technology.
As things mature there will be a correction, ie the bubble will pop.
I would recommend to read « Boom and Bust: a global history of financial bubbles » https://pure.qub.ac.uk/en/publications/boom-and-bust-a-globa...
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You should see all the misallocation that was put towards valve-based computing. Why didn't they just all arrive at the correct answer without investing in discovery first?
As long as the data centers are utilized and generating revenue, I see no reason for a correction or any misallocation of capital for the infrastructure buildout.
And today these data centers are fully utilized. OpenAI tweeted today that they may need to disable new signups for the Pro subscription in the near future due to capacity constraints.
A year from now, who knows what the situation is going to be like. It seems quite possible that robotics, self driving, research, etc. drive even more demand and revenue.
Stating with any certainty that allocating capital to build infrastructure is a mistake and that there is a correction coming seems unserious.