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Report says 'circular financing' shows AI bubble 'primed to pop' (www.openmarketsinstitute.org)
submitted 5 days ago by to c/technology@lemmy.world
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cross-posted from: https://piefed.world/c/tech/p/1492252/report-says-circular-financing-shows-ai-bubble-primed-to-pop

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[–] 12 points 4 days ago (2 children)

It's like 2008, but nobody needs a movie to explain it because we're all watching it happen.

Everyone knows ai is a bubble, it will crash, and they'll get bailed out.

I half think they're trying to blow up the Chinese market, but they don't appear to have bet the farm. The worst that will happen is they'll have a huge stash of chips and can get real aggressive with Taiwan.

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  • [–] 4 points 4 days ago (1 child)

    Bet they don't get bailed out. AI isn't an important American industry with tens of thousands of employees like the auto giants. AI isn't the backbone of our financial system like banks. To top it off, using taxpayer money to bail AI companies would be political suicide for either party.

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  • [–] 3 points 4 days ago

    The FED can’t bail out big tech with how hot inflation already is already running. US Treasury is having a hard enough time already keeping Japan propped up while getting bids on their own t bill auctions.

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