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Treasury Has an Internal Report Warning About the Dangers of an AI Bubble (www.notus.org)

submitted 1 month ago by Some_Emo_Chick@lemmy.world to c/politics@lemmy.world

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[-] jeanpascal@lemmy.zip 29 points 1 month ago* (last edited 1 month ago)

The report stresses that AI companies maintain some fundamental differences from the businesses that dominated the dotcom boom of the late 1990s, which was defined by speculative excess and an overreliance on debt financing. Many of the top AI companies, by contrast, are more mature, profitable and maintain healthier balance sheets, which could blunt the impacts of the “bubble” bursting — or if it bursts at all.

Sorry, what profit? I mean, Nvidia is making a killing, but the rest? https://isaiprofitable.com/

[-] NekoKoneko@lemmy.world 10 points 1 month ago

Well, I take that to mean that Google (ad profit), Meta (ad profit), and Nvidia (hardware profit) are profitable companies even if AI is a notorious money-sink. I do agree that if they weren't able to absorb vertigo-inducing billions of dollars of AI losses via their other income, the AI bubble would have popped already.

[-] jeanpascal@lemmy.zip 5 points 1 month ago

Ah yeah, I see what you mean. When the article mentioned AI companies, I was thinking of OpenAI, Anthropic etc. only, but true that Google could absorb a hit from a bubble. Not sure how they'll do long term, since they're all in on this and planning to remake completely how you search with them.

[-] ParlimentOfDoom@piefed.zip 1 points 1 month ago* (last edited 1 month ago)

Except LLMs are hurting Google's ad revenue. Companies don't want to pay for views they can't verify are even people. On top of their LLM results box pushing their sponsored results down the page, and removing people's likelihood to click into any links, where AdSense might be present

[-] CharlesDarwin@lemmy.world 15 points 1 month ago

What, are you saying the circle jerk/reach-around fest is not economically sound?

https://youtu.be/RcPthlvzMY8?t=158

[-] jaybone@lemmy.zip 14 points 1 month ago

Shall we prepare for another bailout? Too big to fail. Etc.

[-] santa@sh.itjust.works 5 points 1 month ago* (last edited 1 month ago)

Let it fail. Let it all fail.

[-] green_goglin 8 points 1 month ago

first_time.jpg

[-] qarbone@lemmy.world 8 points 1 month ago

This is what always fucks me off. We always used to learn, after 20-30 years, that people knew about all the bad shit that was about to happen.

They knew cigarettes caused cancer; they knew climate change was caused by burning fossil fuels.

They know AI is going to pop and drag the economy into the pits of hell.

And fuck all is done about it. Shit finally hits the fan and they wring their hands, saying "Oh God, we need to do something!" They act like they are dealing with a new crisis, like the rest of us. Meanwhile, they have had the information for decades.

You are the government. All the information is available to you. Do something with it, or pass the fucking controller.

[-] altphoto@lemmy.today 2 points 1 month ago

No one will have jobs...so how is anyone to pay for anything? Including AI tokens lol.

this post was submitted on 06 Jul 2026

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