Its not a bubble. A bubble is when you sink billions into something with no payoff. We’ve sunk trillions. Any people aren’t just uninterested, a substantial amount are actively opposed to it. Its not the same thing at all.

Of course they deny that AI is a bubble. Like real estate speculants deny the housing market being a bubble. It simply would be an admission of failure.

This is clearly a bubble.

I don’t care if AI is useful, it’s not this useful. And it sure as shit isn’t going to see the returns they expect.

I run an internal multi-user AI app. It plugs into almost everyone’s workflows to make things easier (fetches documents, pulls data, contextualizes stuff). It costs $1 per day per user in token costs .

You need a trillion people using these apps for the current valuations to make sense.

The truth is: if you have wealthy people asking if a bubble is real, and their friends who benefit from their investment deny it, the bubble it is real.

Filthy rich liars that got filthy rich by lying and stealing are once again lying to protect their disgusting wealth. Who could‘ve seen this coming?

So…

It’s not a bubble because…

“This is the largest infrastructure build-out in human history,” Huang said of active and promised data center projects. "And so the AI bubble is, comes about because the investments are large. And the investments are large, because we have to build the infrastructure necessary for all of the layers of AI above it."

It’s something we’re sinking money into soley because we’ve already been sinking money into it, and we don’t want anyone else to get ahead of us even though literally no one has found a way to monetize it enough to make back prior investments let alone new investments…

Like, he knows that’s literally the definition of an economic bubble, right?

Is he just trying to grift dumb rich investors, or does he legitimately not understand his company could go bankrupt literally at any moment if the investor class ever comes back to reality?

I regularly use GH Copilot with Claude Sonnet at work and it’s a coin toss whether it’s actually useful, but I overall do find value in using it. For my own use at home, I don’t do subscriptions for software and I’m also not giving these companies my data. I would self-host something like Qwen3 with Llama.cpp, but running the flagship MoE model would basically require a $10k GPU and one hell of a PSU. I could probably self-host a smaller model that wouldn’t be nearly as useful, but I’m not sure that would even be worth the effort.

Therein lies the problem. My company is paying a monthly fee for me to use Copilot that would take like 20 years to pay for even one of the $10k GPUs that I’m likely hogging for minutes at a time, and these companies are going to spend trillions building data centers full of these GPUs. It’s obvious that the price we are paying for AI now doesn’t cover the expense of actually running it, but it might when these models become less resource-intensive to the extent that they can run on a normal machine. However, in that case, why even run them in a data centers instead of just running them on the user’s local machine? I’m just not following how these new data centers are going to pay for themselves, though maybe my math is wrong, or I’m ignorant of the economies of scale hosting these models for a large user base.

The “damage control” they’re doing clearly isn’t working that well, eh?

“Not a bubble” isn’t for us it’s for investors that are starting to wake up. He’s just trying to keep them asleep

We banish you from this plane of reality, AI bubble!

waves wand

Begone evil beast!

Does he ever wash those clothes?

What they say about it means nothing. Why would they say anything else?