relevant article https://www.theringer.com/2025/11/04/tech/ai-bubble-burst-popping-explained-collapse-or-not-chatgpt

AI storytelling is an amalgam of several different narratives, including:

Inevitability: AI is the future; its eventual supremacy is both imminent and certain, and therefore anyone who doesn’t want to be left behind had better embrace the technology. See Jensen Huang, the CEO of Nvidia, insisting earlier this year that every job in the world will be impacted by AI “immediately.”

Functionality: AI performs miracles, and the AI products that have been released to the public wildly outperform the products they aim to replace. To believe this requires us to ignore the evidence obtained with our own eyes and ears, which tells us in many cases that the products barely work at all, but it’s the premise of every TV ad you watch out of the corner of your eye during a sports telecast.

Grandiosity: The world will never be the same; AI will change everything. This is the biggest and most important story AI companies tell, and as with the other two narratives, big tech seems determined to repeat it so insistently that we come to believe it without looking for any evidence that it’s true.

As far as I can make out, the scheme is essentially: Keep the ship floating for as long as possible, keep inhaling as much capital as possible, and maybe the tech will get somewhere that justifies the absurd valuations, or maybe we’ll worm our way so far into the government that it’ll have to bail us out, or maybe some other paradigm-altering development will fall from the sky. And the way to keep the ship floating is to keep peddling the vision and to seem more confident that the dream is inevitable the less it appears to be coming true.

speaking for myself, MS can thank AI for being the thing that made me finally completely ditch windows after using it 30+ years

Don’t forget, “Turns out it was a losing bet to back DEI and Trans people”.

This is something scared, pathetic, loser, feral, spineless, sociopathic, moronic fascists come up with to try to win a crowd larger than an elevator; Assume the outcome as a foregone conclusion and try to talk around it, or claim it’s already happened.

Respond directly. “What? That’s ridiculous. I’ve never even seen ANY AI that I liked. Who told you it was going to pervade everything?”

That reminds me how McDonald's and other gaat food chains are struggling. People figure it's too expensive for what you get after prices going up and quality going down for years. They forgot that people buy if the price and quality are good. Same with AI. It's all fun if it's free or dirt cheap, but people don't buy expensive slop.

If the cost of using it is lower than the alternative, and the market willing to buy it is the same. If the current cloud hosted tools cease to be massively subsidized, and consumers choose to avoid it, then it’s inevitably a historical footnote, like turbine powered cars, Web 3.0, and laser disk.

There's another scenario: Turns out that if Big AI doesn't buy up all the available stock of DRAM and GPUs, running local AI models on your own PC will become more realistic.

I run local AI stuff all the time from image generation to code assistance. My GPU fans spin up for a bit as the power consumed by my PC increases but other than that, it's not much of an impact on anything.

I believe this is the future: Local AI models will eventually take over just like PCs took over from mainframes. There's a few thresholds that need to be met for that to happen but it seems inevitable. It's already happening for image generation where the local AI tools are so vastly superior to the cloud stuff there's no contest.