A big chunk of it.
Quote:
"So, you're saying a third of the stock market is tied up in seven AI companies that have no way to become profitable and that this is a bubble that's going to burst and take the whole economy with it?"
I said, "Yes, that's right."
Bull***** Those companies are all profitable today. Unless his list of companies excludes the likes of Nvidia, Google, Alphabet, and Microsoft.
He quotes an MIT article from
2019 as proof that most companies fail at AI. 2019? Come on! It's '25. Only a bunch if people fail at AI now; not all of them!
He's correct that every investment fund is chasing the next big AI bet. But every investment fund was chasing the next big dot com in the late 90's early 00's. Anyone remember garden.com? They quickly became garden.gone. But they had plenty of investors and the AI companies do too.
And every consultant will tell you AI will replace people. Or at the very least make them 40% more efficient. He's also correct there. And all those consultants are largely full of ***** Although they are mostly replacing their analysts with AI. So maybe there is a win.
Data centers are a blight and hardly employ anyone. But as long as their services are consumed; they will be profitable.
I do think AI will be useful in some ways and tradeoffs will have to be made. Most of the attempts fall short in many cases. Most companies willl fall short; but some will succeed if they have the right use case.
Just reminder, most dot com companies had no idea if the they would make money. Most had no business plan but still got funding. And burned though that capital.
He's right Zuckerburg is rolling the dice of AI specialist compensation. That will all likely come back to bite them in the ass.
But to surmise that new data centers don't have a plan for profitability is a joke. They are dependent on someone buying their services. As long as there is a need for cloud computing they will make money.
Until AI
really flops, there is lots of money to be made. But a lot of those companies will be gone in 10 years. A few will hang around and make it work. There is a path. If they are in the right place at the right time with the right product - its not all doom and gloom. As the article implies.
