is this $11,500,000,000 in real money or speculative money?
There is no difference anymore
You think it’s 11.5B worth of gold bars?
Maybe, just maybe, the bubble started bursting now.
Would be nice, I want to buy some ETFs at a discount
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…
No, you don’t understand. Lose money on every sale, but make up for it in volume!
If you lose enough money, you trigger an integer overflow and end up with a profit!
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.
In contrast to the housing bubble, where a lot of the value was in overpriced houses sold to individuals,
was?
34% of single-family housing are now rented out. We’re not building enough housing, a fact that hasn’t changed since the housing bubble collapsed. So, a lack of investment in new property, large funds putting money into existing properties instead, and less risky homeowners overall means we don’t really have a housing bubble. We have a supply shortage, leading to high prices. The correction for that isn’t a crash.
since the housing bubble collapsed
did it? it does not seem so. where I live to buy a house in good condition people need to take out loans that the bank may not even allow, but if it does they’ll pay it for decades. even empty plots are still very expensive. more and more people live in a rented place even though they don’t want to move, because their house is taken away.
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.
They will be fine either way…
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
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.
The whole “AI” thing is one big grift.
I agree, and essentially they used slightly reworked old neural network technologies, increasing their power with the help of data centers.
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.
Finally, some good news.
Oh no!
Anyway…
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
Like Nividia which… Oh all based on AI revenue.
And even though NVIDIA is better place as they do produce something, but the something in play has little value out of the AI bubble.
NVIDIA could be left holding the bag on a super increased capacity to produce something that nobody wants anymore (or at least nowhere near at the levels we have now) so they are still very much exposed.
I want cheap GPUs at home please!
me too, but the GPU used for AI are not the same as what we would use at home.
maybe the factories can produce both kinds and they would be cheaper, but it is speculation at this point
It’s literally the same chip designers, production facilities and software. Every product using <5nm silicon fabs compete for the same manufacturing capabilities (fab time at TSMC in Taiwan) and all Nvidia GPUs share lots of commonalities in their software stack.
The silicon fab producing the latest Blackwell AI chips is the same fab producing the latest consumer silicon for both AMD, Apple, Intel and Nvidia. (Let’s ignore the fabs making memory for now.) Internally at Nvidia, I assume they have shuffled lots and lots of internal resources over from the consumer oriented parts of the company to the B2B oriented parts, severely reducing consumer focus.
And then we have any intentional price inflation and market segmentation. Cheap consumer GPUs that are a bit too efficient at LLM inference will compete with Nvidias DC offerings. The amount of consumer grade silicon used for AI inference is already staggering, and Nvidia is actively holding back that market segment.
They’re the ones selling shovels in this gold rush, though.
The problem is that the companies that actually produce revenues and profits are also in turn being propped up by AI.
such as?
And that is probably only the beginning.
Don’t worry. An XBOX will cost 1400$ soon to help make up for it.
Did they check the couch cushions?
Yeeees! Down with this crap!
