This AI bubble is rapidly accelerating and it will take the entire market (and global economy) down with it. And while Sam Altman didn't singlehandedly ignite the new silicon arms race, OpenAI (and ChatGPT) did usher in the era we are now living in.
Much was said about Nvidia overtaking Microsoft today to become the world's most valuable company, but take a look at the top 3:
They are ALL beneficiaries of partnerships with OpenAI. Microsoft added a trillion dollars of market cap since partnering with them last year and Apple hit new all time highs after their announcement that ChatGPT will power "Apple Intelligence". And Nvidia? Well, they were just a $300 billion dollar video game card maker 5 years ago and now they are the biggest company on earth because their cards train AI models.
I'm just flabbergasted at how quickly and thoroughly the promises made by one small startup has become the economic backbone of the entire stock market. The bubble popping for this hype cycle will be one for the ages.
Capitalism is such an evolutionary dead end.
Ok so let's look at the problems facing our species currently and in the near future.
Pandemics and constant disease with expensive or non-existent healthcare: Capitalism can't do anything about it without taking power away from corporations. So, no solution
Poverty, food prices, housing, etc: Same thing.
Environmental collapse due to exploiting the planet for profit: Again, same thing. Wait, capitalism caused this one too? I'm starting to see a pattern.
Mental health at an all time low with depression reaching epidemic levels: Same story yet again.
And the list goes on, you can look at anything from bad workplace conditions to child labour Labor to microplastics and it's the same story. Every problem is with caused or ignored by capitalism, usually both. It's death for our species.
If I had a nickel for every time a "Sam ____man" was a very influential figure in a speculative bubble, I'd have two nickels. Which isn't a lot but it's weird that it happened twice
(Grifter guy in 2018 selling an old software development methodology with a new veneer voice)
Because I'm Agile, but I'm not that Agile
That's how much capitalists value the promise of AI decimating labor costs.
I think this is the real answer. Crypto was a pure grift. AI allows companies to steal other people's labour in the form of gen ai in order to fire even more people and its already in full swing and claiming jobs.
Hmm It’s almost like it’s in the capitalist's interests to cut down labor force to increase the rate of profit… nah, must be wind
What are the odds on it not reducing labor costs, but also adding in a new expensive tool that everyone must use because management signed a contract, like with cloud environments.
And Nvidia? Well, they were just a $300 billion dollar video game card maker 5 years ago
That's not entirely accurate. They may have had a $300 billion market cap but they were also a critical component of the Crypto supply chain. NVIDIA, more than basically everyone else except electricity companies, has been the primary beneficiary of two grifts in a row.
Actually allow me to argue for a second that it's really NVIDIA behind this bubble and not OpenAI. OpenAI might have been the flintstone that ignited the bubble but NVIDIA has been there investing in companies that turn around and give the money back to NVIDIA.
A bunch of nerds think it's possible to improve society through tech startups. The logic of capitalism ensures that whatever social benefit gets in the way of profit will be stripped out. But that doesn't just automatically happen because capitalism, someone has to actually be involved in the decision making process, making that happen. Sam Altman is a world champion at being that guy.
it's a hell of a hype train when you promise a massive cut to all labor costs across the board, he's an accelerationist of the contradictions
Every day he is not in jail, we will live to regret.
Won’t stop saying it.
Guess I'm OOTL, why should Sam Altman be in jail? Did he avoid jail time or something?
Not defending the guy, he seems like every other tech ceo.
It's pretty wild how "the most rational economic system" keeps elevating these absolute goons to such dizzying heights. Imagine something like this under feudalism. Normally it takes a few centuries to Habsburg yourself into clamshell-eyed mandible men and by that time they aren't your battlefield commanders anymore. Yet here we are, flying with wax wings toward the sun and our pilot is some knees and elbows nerd.
I figure that X goes under first. The others I think have enough cash flow to buy time, but X simply doesn't.
my brother kept telling me i should invest but i'm too broke for that shit
I don't know anything about anything but I'm pretty sure it's not a good time to invest regardless. Hedge fund ghouls will know the bubble's bound to pop ahead of time so shorting this when AI hype starts to die down probably won't work, and actually investing in Microsoft or whatever hoping you can cash out before people realize it's nonsense is also incredibly risky for the same reason.
Not to mention the possibility that AI isn't like crypto and it actually is here to stay. Obviously another 4 trillion parameters aren't gonna get Chat GPT to stop telling people to replace pizza sauce with glue, but there's a legitimate chance that tech goes along and pretends this garbage works. That's just how it is now.
The stock indices have reached new records after every single crash . Because capitalism must grow. Line must go up. Because if line go down, the whole promise of return of investment goes out of the window and the thing collapses. Any money you put in the market as a whole (ETFs), will be worth more in the future than it is now. But it has to be money that you don't need to rely on in the next 15-20 years, so it's exclusively for people who are rich already.
Everything else, like picking a single stock like those GameStop idiots, is just straight up gambling. Betting on horse racing is equally as productive.
But actual intelligence demands unaffordable and costly things like a “liveable wage” or “bread and roses”.
