AI is funded solely by sunk cost fallacy at this point. I wonder how long it will be before investments start getting pulled back because of a lack of ROI. I can already feel the sentiment towards AI and it getting pushed in everything turning negative amongst consumers recently.
AI is funded solely by sunk cost fallacy at this point.
and the us economy an gdp relies solely on ai make of that what you will.
One of our biggest bookstores contracted with a local artist for some merch. That artist used AI with predictable results. Now everyone involved is getting raked over the coals for it.
No surprise, they just announced a 4th round of layoffs too. 😟
https://www.koin.com/news/portland/powells-layoffs-employees-10292025/
I wouldn’t have a problem if they were actually investing the money in something useful like R&D
Nearly all the investment is in data centers. Their approach for the past 2 years seems to be just throwing more hardware at existing approaches, which is a really great way to burn an absurd amount of money for little to nothing in return
I wonder how long it will be before investments start getting pulled back because of a lack of ROI.
Just wait for the next hot thing to come out
Why do you think AI is pushed so hard?
Everyone is aware this has to be useful. Too much money.
Still the powers that be will do everything to avoid a hard crash, which would be so much earned.
When I lose $11 Billion dollars, I have to go to bed without supper.
If you owe the bank $100, that’s your problem; if you owe the bank $100 million, that’s the bank’s problem.
is this $11,500,000,000 in real money or speculative money?
Yes, lol.
I look forward to the AI bubble bursting, and billionaires looking shocked, ‘because there were no signs’
They won’t lose any money…
In contrast to the housing bubble, where a lot of the value was in overpriced houses sold to individuals, this overpricing is almost entirely in tech stocks, and tech stocks are almost entirely owned by by the wealthiest 10%, even 1%. The tech billionaires have limited ability to divest themselves of their own overpriced companies and absolutely will lose money.
None of them are going bankrupt, they’ll all be just fine when the market recovers in a few years, because that’s the nature of capitalism. A bunch of peons, who convinced themselves that the bubble-value of their 401k meant it was safe to retire, will suffer, will have to go back to work - if you’re not an oligarch, losing money is painful.
Yeah all the people praying for a crash are praying for nobody to have retirement funds.
You can easily tell who’s actually employed in this thread because anyone with a 401k is going to get dicked down while the 0.1% get a bailout.
A lot of them are actively talking about how it could be a bubble and the implications. No one is going to be surprised. Billionaires are just really hoping they can make it work before the bubble pops
Yeah… I mean billionaires have at least as much information as a random person on Lemmy :D
They will be fine either way…
Good.
Fuck AI, send it directly to hell.
AI is here to stay. AI is also in an unsustainable bubble. Both things are true
It’s useful. It wastes a lot of my time with its stupid bullshit. Both are true. 😆
Words do not compute. Issuing a $1T IPO to Sam Altman.
So they “lost” $11.5B? Cool, I lost 20 bucks last week and still had to explain it to my accountant 🤭 Feels like the entire AI industry is built on “don’t worry, growth will save us”, but at some point someone has to pay the electricity bill…
It’s magic that will magically transform the world and make everybody rich and magically do our work for us. Like in Disney’s Sorcerer’s Apprentice.
The entire American economy in a nutshell
Wow. Glad they just converted to a for profit entity! Can’t wait for them to unleash all this success on to the the general financial market.
Its a bubble
Billions in investment. Trillions in speculation. All on something that makes less money than Genshin Impact.
Fun times.
Hubble bubble S&P’s in trouble
The whole “AI” thing is one big grift.
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One man’s quest to own all the leather jackets on Earth.
Who wants to give me a billion dollars to dig a hole and I’ll give you a billion to fill it back in and we’ll both say to investors we posted a billion dollars in revenue.
I thought for-profit companies were supposed to make a profit…
Microsoft also lowered stake in OpenAI from 32.5% to 27%
https://blogs.microsoft.com/blog/2025/10/28/the-next-chapter-of-the-microsoft-openai-partnership/apparently the bubble might not be as extreme as some people think because the major AI players are all being propped up by companies that actually produce revenues and profits
You know if you invest all your winnings into all the companies that buy your stuff so that they can buy more of your stuff, you are actually not generating any winnings.
The problem is that the companies that actually produce revenues and profits are also in turn being propped up by AI.
You have to make money to lose money.
