I may be wrong but i thought this guy was not at all a respected investor and only made 1 good trade. So his opinion is kinda worthless.
If I had to make a guess, I say it probably will. The convenience of AI is probably here to stay, but the craze of replacing everything with AI will go out the door.
AI will become exactly what it should have been in the first place: an assistant. Not your friend, not your doctor, not your therapist, not a replacement for artists/authors/programmers, and not inside every piece of tech post 2025. It has a place. That place is over-embellished right now, not to mention unsustainable.
Just a reminder that the term “AI” stands for a category of systems that contains a lot more than just LLMs.
Sir, this is the stock market.
People order with their feelings, not facts.
It will definitely burst, and might take out some fairly large companies with it. Potentially even one or two tech companies that have been around for decades depending on how large it gets before that burst. One or two companies will end up with the IP all of them are “building” and it will fizzle into the background of daily use just like the previous assistants like Alexa, Cortana, etc. have.
Potentially even one or two tech companies that have been around for decades depending on how large it gets before that burst.
Please be Microsoft, please be Microsoft, please be Microsoft.
Itll be nvidia and openai primarily, id have to imagine
It wont be Nvidia unless they play things incredibly badly, they’re the only ones making actual profit by selling shovels in the goldrush.
Microsoft already had a proven business model and established products and services before the AI boom. If a company goes under it would almost certainly be one focused almost entirely on AI such as Palantir.
Agreed. Probably where it should have stayed in the first place. Not that its not interesting, just that the scope of AI has widened beyond what it should have.
Dotcom groundhog day for the tech sector.
As an aside, you can tell how successful the rebranding of twitter as “x” has been, since even now more than 2 years after the rebranding news articles still have to add “formerly known as twitter” every time they mention it.
I still call it Twitter regularly.
To me, X is a windowing system.
Xitter is the proper rebrand.
Wayland, formerly known as Twitter
Even Grok AI follows up with that reminder when it mentions X.
But I also still say Facebook and Google instead of Meta and alphabet
Those are changes in parent company names though while the services Facebook and Google still exist. The rebrand of Twitter to X continuing to not stick for people is a much bigger failure on their part than Meta and Alphabet not entering the general zeitgeist.
This is a long term investment, predicting that the bubble will burst _at some point _. It doesn’t signify that he believes the collapse to be imminent. The market can remain irrational longer than you can remain solvent!
I think it’s a bubble but I’m also suspicious we’re near peak investment and think it could sustain for a while yet. I wonder what sort of range he’s projecting for the peak and timeframe
Burry similarly made a long-term $1 billion bet from 2005 onwards against the US mortgage market, anticipating its collapse. His fund rose a whopping 489 percent when the market did subsequently fall apart in 2008.
We may have to wait for another three years.
I looked into the article to find out how long a timeframe he is betting. Unfortunately, it does not say.
You’d think the timing should reflect the typical terms of loans and loan volumes - so that sounds plausible. When the default rate of those loans begins to creep up and become notable to investors, then people will get edgy.
I just hope it comes before our much loved and overpaid layers of incompetent management have destroyed all their manual production processes and replaced them with snake oil. If not a general economic downturn might start well before the ai bubble bursts.
Good
Lol well, wonder where he gets his information. Seems sus. I am familiar with who he is. Just curious what piece of information was the “tipping” point. People don’t put money down like that unless they have insider knowledge, IMO.
Yeah they do though. His bet before the 2008 crash was similar. It’s where the market is pointing. Publicly available data suggests there’s a big ass bubble. The timing is essentially a bet. Last time it almost wiped him out because he was a bit early. We’ll see how it goes this time.
I did a search on the internet for ‘big ass bubble’, and to my surprise the results had nothing to do with a.i.
Well he found out about the sub-prime mortgage fiasco by looking at the public filings that nobody bothers reading. All of the companies involved are public companies that have to file accounts. He’ll be tracing what’s going on and painting himself a picture.
