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- 17 de Mayo, 2023
There are several indicators that the AI boom is finally going to go bust soon as years of debt, financial circlejerking and inflated valuations finally make everything implode. After several years of noticeable improvements in LLMs for prediction, image and video generation and programming, lately the new releases from OpenAI, Anthropic and other companies have been comparatively minor releases. And the markets are starting to notice.
In the past week, several of the big tech companies have published their quarterly earnings. Regardless of if they met their price targets, most of their share values dropped anyways.
MSFT beat their earnings but share prices dropped.
As of writing, GOOG will be announcing its earnings later today, but investors don't seem confident despite projected growth, and Gemini is generally considered the best of publicly available LLMs.
ORCL is deeply leveraged into AI, but is currently trending far below its already-lowered price target of $220/share. Michael Burry recently announced he has taken a large put position against them. (Archive)
Another article (Archive) was posted last month going into great detail on the incestuous relationship between OpenAI and Anthropic, Nvidia, TSMC and other software companies. In short, data centers are being built that will be obsolete by the time they are completed by the end of 2027, if they're completed at all. Chip shortages are strangling consumer and enterprise resources, especially for storage and RAM. Power grids are being pushed closer to capacity with your average consumer footing the bill. Microsoft bought Three Mile Island (Archive) and intends to bring it back into commission due to increased power needs for LLMs. However, when China's DeepSeek was shown running offline on a cluster of Macs, $1 trillion in market value was wiped out by panic selling. (Archive)
It seems like the markets are finally starting to realize that AI is not the miracle they thought it would be, and they're running out of lies to delude other and themselves into continuing to throw money into it.
When do you think the collapse will really start? What will it look like? Who will surive? How can you benefit from it?
In the past week, several of the big tech companies have published their quarterly earnings. Regardless of if they met their price targets, most of their share values dropped anyways.
MSFT beat their earnings but share prices dropped.
As of writing, GOOG will be announcing its earnings later today, but investors don't seem confident despite projected growth, and Gemini is generally considered the best of publicly available LLMs.
ORCL is deeply leveraged into AI, but is currently trending far below its already-lowered price target of $220/share. Michael Burry recently announced he has taken a large put position against them. (Archive)
Another article (Archive) was posted last month going into great detail on the incestuous relationship between OpenAI and Anthropic, Nvidia, TSMC and other software companies. In short, data centers are being built that will be obsolete by the time they are completed by the end of 2027, if they're completed at all. Chip shortages are strangling consumer and enterprise resources, especially for storage and RAM. Power grids are being pushed closer to capacity with your average consumer footing the bill. Microsoft bought Three Mile Island (Archive) and intends to bring it back into commission due to increased power needs for LLMs. However, when China's DeepSeek was shown running offline on a cluster of Macs, $1 trillion in market value was wiped out by panic selling. (Archive)
It seems like the markets are finally starting to realize that AI is not the miracle they thought it would be, and they're running out of lies to delude other and themselves into continuing to throw money into it.
When do you think the collapse will really start? What will it look like? Who will surive? How can you benefit from it?
