alt Hacker NewsIf AI share crashes, that’s actually good for the public because all the value is now captured by them instead of companies. This is because a crash can only happen if prices go down (which is good) or Chinese models become as good as frontier (which is also good).
The question is, if this happens then how do you incentivise more R and D? Which investor would invest without the returns?
Edit: not surprisingly people don’t understand the point.
Would you rather NVIDIA and OpenAI get rich and capture the value or the public? Such a strange thing to see people rooting for the big companies.
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The real question is if the money leaves AI stocks where does it go.
> This is because a crash can only happen if prices go down (which is good) or Chinese models become as good as frontier (which is also good).
No... This is not accurate at all. AI valuations are based on high future growth. Prices could stay the same but growth slows and that could cause a crash by itself.
They can't properly meet the current demand. A crash will primarily hit NVIDIA, AMD and other AI chip makers as they have oversold already and the cards are sitting in storage waiting for the needed data centers and the power needed to run them.
Its like a gold rush where half of the picks are sitting in storage because there are not enough miners to wield them.
In what world is a global financial crash good for the public? At least short-term this will be painful for everyone.
Would a correction unlock funds for other interesting and important ideas, even in AI space (not just LLM). I guess only time will tell.