At least there are signs now that the AI bubble may be cracking, with stock prices in many AI related companies dropping sharply.
When the bubble burst, AI companies will not have money to soak up everything, and prices will return to normal.Yeah, right. Sorry for the snark there, but there’s no way that the bloated profits from this aren’t like crack. They might drop some, but not back to what they were.
ratchet
They didn’t drop on bubble fears I think. The memory and disk stocks dropped because a competitor showed up, I think it was Chinese but maybe Korean. And they have gotten back up again quite a lot.
Nvidia dropped because of circular financing worries. They agreed to back a massive open Ai datacenter in exchange for OpenAi putting Nvidia chips in there.
So there is a lot going on, but I dont think investors agree it’s a bubble. These datacenters are sold as being for chat gpt but I think investors know that it’s about watching every human being on the planet. And there will be a lot of revenue from providing the infrastructure and processing for that.
In a decade, I believe we have smart glasses and robots who are connecting to these datacenters, together with connected cars and all kinds of stuff. They will literally be the nerve system for connecting everything, including the monitoring in real time of everyone.
There will be Ai’s connected to eachother through these datacenters, communicating at super fast speeds, each one being trained for a specific purpose.
They didn’t drop on bubble fears I think.
Space X and Tesla are basically speculation in AI, and they dropped a lot. It’s not just RAM companies. And the Chinese company that was introduced on the stock market is not new, it already has about 14% of the global RAM business. The “Situational Awareness” fund dropped 67% with a wide mix of AI company portfolio. And AFAIK Oracle dropped on owning too much Palantir.
