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