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Posted
12 hours ago, Captainant said:

Could go in the markets thread, but it's relevant to discussion here: the AI bubble is 17x the dotcom bubble, and 4x the subprime housing bubble

https://www.marketwatch.com/story/the-ai-bubble-is-17-times-the-size-of-the-dot-com-frenzy-this-analyst-argues-046e7c5c

TLDR: LLM's are already showing signs of scaling limitations (see energy costs), and apps built on an LLM don't have much marketability since it's so easily replicated. So there's not much market incentive to use the increasingly more and more expensive latest models.

All the CapEx spending that's been keeping LGU economics happy, is not well positioned to generate returns on all the financial commitments made

There has been some major bloodletting RIF's in the tech industry, starting with Microsoft earlier this year and then Oracle and Intel in the Spring/Summer, both companies laying off thousands of workers not because the employees were being replaced by AI but because of all the CapEX being dumped into AI. Then of course there has been a cascading effect to the contingent workforce, with Accenture and Tata also having mass layoffs.

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