• Pratai@piefed.ca
    link
    fedilink
    English
    arrow-up
    4
    ·
    17 hours ago

    There is no AI bubble, just like there is no housing bubble. It’s here to stay. This is the sad truth.

    • finalarbiter@lemmy.dbzer0.com
      link
      fedilink
      English
      arrow-up
      19
      ·
      edit-2
      4 hours ago

      An economic bubble doesn’t require that the assets suddenly disappear upon the bubble popping.

      The 2008 financial crisis was caused in part by the popping of a real estate bubble in the US. Those properties didn’t magically evaporate after the bubble popped, though many families couldn’t afford to keep their homes.

      In the same manner, nobody is really suggesting that LLMs will suddenly disappear after the AI bubble pops, only that they will probably be proven to be significantly less profitable and get scaled back.

      • redballooon@lemmy.world
        link
        fedilink
        English
        arrow-up
        1
        ·
        6 hours ago

        In the same manner, nobody is really suggesting that LLMs will suddenly disappear after the AI bubble pops

        There is a significant portion of AI haters who think exactly that, for some reason.

        • finalarbiter@lemmy.dbzer0.com
          link
          fedilink
          English
          arrow-up
          1
          ·
          4 hours ago

          I mean, it’s likely that a good chunk of these hyperscale data centers and some of these big corporate LLMs will run out of cash and close shop. We’ll probably see a big pivot to much more efficient models that are local and/or purpose-built, not unlike what the Chinese are already doing.