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AI bubble could burst and take global economy with it, IMF warns (www.theregister.com)
submitted 1 day ago by to c/fuck_ai@lemmy.world
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AI investment has helped keep markets and economic growth ticking along, but the IMF fears the boom could quickly turn to bust if the promised profits fail to materialize. With tech giants borrowing billions and investors piling into the same handful of companies, a selloff could leave more than just Silicon Valley nursing a hangover.

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[–] 10 points 1 day ago (1 child)

COVID took the global economy with it.

Losing AI would be like... I don't even know, insignificantly small compared to that.

If AI up and disappeared tomorrow when I clocked into work, it might actually make my job easier. I could be even more productive without having the slop floodgates open every day.

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  • [–] 1 point 23 hours ago*

    The problem is not the "losing of AI", it's the loss of human and physical resources that went into AI and will ultimatelly yield little or no Economic value when they could have been gone into productive Economic activities.

    The human part is similar to COVID - people's time that could have been used in Economically productive activities was lost and will never come back - however the AI bubble differs in that actual physical resources have been wasted (mainly building and equiping datacenters) whilst during COVID fewer physical resources were used (mainly in vaccines and PPE).

    Also the AI bubble is mostly concentrated in the US, whilst COVID was global, which means that the damage of it blowing up will probably be worse in the US, whilst that of COVID was much more diffused.

    But the really big things is not even the AI bubble blowing up per-se - it's that there are other bubbles which are ready to blow (such as realestate Worldwide and auto-loans in the US) plus a worldwide Oil crisis caused by America's war against Iran, so the Economic shock of the AI bubble blowing will be amplified by the latter and will likely make the former blow up, almost certainly adding up to even more damage that the 2000 and 2008 Crashes (possibly as much as both put together).

    COVID was a slowdown of Economic productivity, this shit will probably be the Find Out stages all on top of each other of years of Fuck Around misallocating resources in multiple Economic domains.

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