this post was submitted on 02 Dec 2025
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Microsoft has gone all-in on AI to the detriment of basically every other aspect of their business. They are in deep deep shit when the bubble finally pops.
And I am so ready for the bubble to burst.
15% of the total United States GDP is a single company. I struggle to comprehend the scale of that, but one thing is for certain; it's going to bite us in the ass eventually.
no, it is not. you struggle to comprehend it because it is not true.
it is comparing different things. one is a valuation, the other is the value of goods and services over a year. the comparision would be with yearly revenue of a company
The stat that's going around at the moment is that 30% if the GDP is transactions between the "Magnificent 7". That one is fair because it's economic activity.
The underlying economy is in recession with the AI frosting on top pushing it to break even levels.
That one is even more ridiculously untrue.
Those stocks make up 30% of S&P 500, by weight.
Not GDP.
Thanks for the clarification.
Stock valuation of a company is not calculated int the GDP. Only domestic revenue is. There is no company that makes trillions in revenue.
True, but Nvidia's market cap is still equal to 15 percent of 30.486 trillion. What's worse is that it's ALL built on speculation.
This house of cards WILL fall.
Nvidia is less speculation that the other companies mixed up in this. They at least sell physical goods which they've been shipping.
Microsoft, Google, X, Meta - Oh boy!
They haven't. Part of the reason the bubble is so bad is that NVIDIA has been giving credit incentives to openai and other llm companies. Essentially giving them money so they use it to buy NVIDIA chips, so they can claim higher sales numbers. But there's no revenue. The AI bubble is 4 or 5 companies shuffling money to each other to inflate numbers so investors inject more money.
The only ones making bank are CEOs when they take their bonuses and cash outs. The companies themselves are bleeding. OpenAI needs something like $700 billion dollars more to survive until 2030. LLMs simply don't make any money. Any savings from ai use has been from layoffs. It will all eventually crash out when it is obvious that AI use ultimately hurts revenue, no matter how much it saves in production.
15% of American GDP is approximately $4.57 trillion.
Absurd, isn't it?
It's not one company, but the top 5 companies make up 40% of South Korea's economy, with the top 30 76.9% of their GDP. It's scary to imagine the power they wield over the peoples lives.
Power over their lives? Nonsense, the people of S~~amsung~~outh Korea are completely free to use iPhones instead of Samsung phones if they want! They can also leave their Samsung apartments to work at the Samsung office, built by the Samsung construction company using Samsung heavy machinery, any time they want! If they were to get injured on the way, they'll get treated at Samsung Medical Center and not to worry, of course their Samsung insurance will cover it.
dont worry govt bailouts with public money will come in. Socialism for the rich and capitalism for the poor.
It’s not socialism, it’s welfare.
only if you consider companies as people.
I’m not agreeing with it but if it were socialism we would at least have public ownership of the bailed out company. Any bailout would just be corporate welfare with little return
The bailout should transfer ownership to the public. Employees and (sane) products/services can stay, the idiots who tanked the company can shuffle off.
That's the same with socialism, though.
Socialism would do what's best for society.
Socialism would do what the majority of people wanted it to do, it's not a benevolent entity the marches through society and fixes everything. It's merely a tool for society to use to more directly appease the masses needs.
Welfare? For billion dollar companies? That's rich.
There’s a ton of precedent. Welfare for the rich is justified all the time while those who truly need it are less and less
Completely gave up on the console wars thing too for AI. Such ridiculous leadership by Sadya
Azure might keep them afloat but everything else will likely crumble and they'll have to downsize to mostly just being a cloud provider.
Gods I wish for this.
Don't worry, they have like 250 ERPs too. And they're way more expensive than, say, Odoo, though I guess not as expensive as SAP.
Sorta like AWS and Amazon (but that Microsoft may crumble?)
Fingers crossed 🤞
Microsoft's business model has always been getting businesses who are even stupider than them to give them tons of money. Nothing is ever going to change that calculus.
like any other tech giant