I don't listen to anything said by the others, but does Hasan actually support that position? I'm not convinced.
Soot
joined 2 years ago
Vaush, then Destiny.
Most of these companies DO provide for normal needs and commodities
Ah yes I'll just eat that Nvidia chip cereal, wear those clothes made by Oracle, live in my house made by Figure AI, and get healthcare (not fake AI slop) from CoreWeave.
Obviously these companies play a (very) marginal role in these industries. Nobody is saying the companies don't do outside of AI that is useful. but the point is an absolutely enormous percentage of money (ie, all the dosh invested in AI) is not doing anything productive in these areas.
And all those data centers aren't suddenly useless if this bubble pops.
We were not in great need of more data centers before the AI bubble. And those centres will be filled with AI tensor chips and not geared toward actual needs. I'm sure they can be partially salvaged, but to think they'll be worth anything near the cost is just silly.
The cutoff point is, kind of definitionally, when the circles include economic industries that actually provide needs / major tax revenue etc.
That is the point. For insane investment, these industries are not providing needs, and they're not providing particularly useful commodities, they're generally taking basically as much in subsidies as they're paying in taxes.
Currently we throw a shitton of resources in, we get meager usefulness out, and there's no concrete promise that massively useful resources will ever come out. That's.. what a bubble is. And that's why the graph illustrates it.
This is how people start believing the free market makes it moral for poor people to just die instead