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

submitted 5 hours ago by Some_Emo_Chick@lemmy.world to c/politics@lemmy.world

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[-] jeanpascal@lemmy.zip 7 points 2 hours ago* (last edited 2 hours 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 2 points 1 hour 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.

[-] green_goglin 7 points 3 hours ago

first_time.jpg

[-] jaybone@lemmy.zip 9 points 5 hours ago

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

[-] CharlesDarwin@lemmy.world 10 points 5 hours ago

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

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

this post was submitted on 06 Jul 2026

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