this post was submitted on 30 Oct 2025
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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
Hard to say, really. Yes, MS can absorb loss if the value of their stake in OpenAI goes to $0 overnight, but how much of their stock value is based on expectations that they can sell cloud compute for billions of dollars? And how many private and institutional investors have a stake in that?
The problem is that the companies that actually produce revenues and profits are also in turn being propped up by AI.
such as?
What? there was no such thing a "bubble" around the Metaverse... (at least not the economic slang term "bubble")
From the first video of the Zuck presenting the idea, everyone just laugh it off... Meta did waste tons of money on it but they had the money to burn so there was no bubble at all in play here
If I am rich and stupid, I may think a pool in the roof of my house is a great idea. I can spend the value of the house having it built and then have the house collapse on me. Since I am rich, I can just buy another house or pay to rebuild it and that's the end... no bubble.
However, if I am pitching plans for pools on roofs... and millions of people buy into it, many of whom can barely afford my terrible plans, when the houses start collapsing, too many people will be left with no house or means to procure another one... that's a bubble
lol, what? "Bubble" doesn't just mean something is expensive