Grace Blakeley @graceblakeley.substack.com · Jun 1 When people say 'AI isn't a bubble because the technology isn't going away', it just shows they don't know what a bubble is. The internet didn't go away. Railways didn't go away. Tulips didn't go away. An asset can be overvalued, even if its useful.
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Florida didn’t go away!
Ok... and on a surface reading this is correct... but the intended thing they're trying to communicate is that they think the technology isn't useful. They aren't making a comment on optimal pricing of equity in frontier tech companies. They mean they think the thing is bad!
How many data farms do we need to generate crappy porn and submissive cat bots.
We’re still lighting up fibre that was laid by Worldcom 30 years ago. Plenty of it is still dark.
This is idealistic honestly because rail and internet infrastructure is still useful data centers burn through their components and generate extremely small amounts of real useful product when this bubble crashes there will be essentially nothing of worth
It’s in a Bubble much like Cryptocurrency; both fighting the same breath of gpu air. Environomics (environment economics) says the battle is over before the war started; Data Centers blocked and Destroyed, Planet Heating, Dumb Investors to Greedy to see the writing on the wall. Spend til the end.
And they aren't investing in "AI" they are investing micron, SanDisk, smci, Tesla etc
Took me a second to notice the log scale. Crikey.
It's not a bubble in the long term is what they actually are trying to say.
Part of the problem here is the bubble aspect here isn't over investment in actual useful infrastructure. GPU racks that aren't being activated because the electrical grid buildout isn't fast enough, will turn into orphaned infrastructure that has virtually no value if the bubble pops.
Spill that tea!
Related:
Tulips are still with us.
When anti-AI crusaders say 'AI is an asset just like tulips and railroads', it just shows they don't know much of anything about any of this.
Do people really say that? 🤦
I'm not really sure it's that much use. Especially compared to the other three. Here's hoping it does go way.
Channel tunnel lost investors a fortune.
The tulip comparison is *chef's kiss* — reminds me of diving into the psychology of why humans consistently mistake revolutionary tech for revolutionary profits. We're pattern-seeking creatures in a world where utility and valuation live in completely different universes.
True. Also I think the “AI is everything and everywhere” sentiment is part of the dimension of the bubble.
ai bubble already poped anthropic’s gone catholic. why doesnt jesus’s bubble ever pop?
Am I reading this wrong, or is the Nasdaq chart line the same in every graph? Shouldn't it be more right or left to match the IPO date of each stock?
Seems to me that, whereas the Industrial Revolution decimated the livelihoods of individuals and families, then created new jobs that provided mass employment, the Digital Revolution will do the former but not the latter.
What... What do they think happened to housing? Lol
When you simply compare the AI companies valuations with real companies.. 😳 #AIBubble
To be fair amongst the very broad set of technologies that fall under the vague marketing term of 'AI' some of them probably will go away, especially consumer facing stuff. The point at which faux-social LLMs become economically viable is pretty much invisible for example.