This AI bubble is rapidly accelerating and it will take the entire market (and global economy) down with it. And while Sam Altman didn't singlehandedly ignite the new silicon arms race, OpenAI (and ChatGPT) did usher in the era we are now living in.

Much was said about Nvidia overtaking Microsoft today to become the world's most valuable company, but take a look at the top 3:

They are ALL beneficiaries of partnerships with OpenAI. Microsoft added a trillion dollars of market cap since partnering with them last year and Apple hit new all time highs after their announcement that ChatGPT will power "Apple Intelligence". And Nvidia? Well, they were just a $300 billion dollar video game card maker 5 years ago and now they are the biggest company on earth because their cards train AI models.

I'm just flabbergasted at how quickly and thoroughly the promises made by one small startup has become the economic backbone of the entire stock market. The bubble popping for this hype cycle will be one for the ages.

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[–] Dirt_Owl@hexbear.net 70 points 3 months ago

Capitalism is such an evolutionary dead end.

Ok so let's look at the problems facing our species currently and in the near future.

Pandemics and constant disease with expensive or non-existent healthcare: Capitalism can't do anything about it without taking power away from corporations. So, no solution

Poverty, food prices, housing, etc: Same thing.

Environmental collapse due to exploiting the planet for profit: Again, same thing. Wait, capitalism caused this one too? I'm starting to see a pattern.

Mental health at an all time low with depression reaching epidemic levels: Same story yet again.

And the list goes on, you can look at anything from bad workplace conditions to child labour Labor to microplastics and it's the same story. Every problem is with caused or ignored by capitalism, usually both. It's death for our species.

[–] RION@hexbear.net 63 points 3 months ago (2 children)

If I had a nickel for every time a "Sam ____man" was a very influential figure in a speculative bubble, I'd have two nickels. Which isn't a lot but it's weird that it happened twice

[–] LaGG_3@hexbear.net 27 points 3 months ago (2 children)

I wish Sam Porter Bridges had a P Q-man Kojima ass name

[–] EmmaGoldman@hexbear.net 22 points 3 months ago

Bridge Strandman

[–] FunkyStuff@hexbear.net 9 points 3 months ago

(Grifter guy in 2018 selling an old software development methodology with a new veneer voice)

Because I'm Agile, but I'm not that Agile

[–] marxisthayaca@hexbear.net 5 points 3 months ago

Shit do they grow these weirdos in a lab?

[–] TheModerateTankie@hexbear.net 58 points 3 months ago (4 children)

That's how much capitalists value the promise of AI decimating labor costs.

[–] Gorb@hexbear.net 33 points 3 months ago

I think this is the real answer. Crypto was a pure grift. AI allows companies to steal other people's labour in the form of gen ai in order to fire even more people and its already in full swing and claiming jobs.

[–] xkyfal18@lemmygrad.ml 21 points 3 months ago

Hmm It’s almost like it’s in the capitalist's interests to cut down labor force to increase the rate of profit… nah, must be wind

[–] NephewAlphaBravo@hexbear.net 18 points 3 months ago

damn :yea:

[–] hexaflexagonbear@hexbear.net 16 points 3 months ago

What are the odds on it not reducing labor costs, but also adding in a new expensive tool that everyone must use because management signed a contract, like with cloud environments.

[–] flan@hexbear.net 55 points 3 months ago* (last edited 3 months ago)

And Nvidia? Well, they were just a $300 billion dollar video game card maker 5 years ago

That's not entirely accurate. They may have had a $300 billion market cap but they were also a critical component of the Crypto supply chain. NVIDIA, more than basically everyone else except electricity companies, has been the primary beneficiary of two grifts in a row.

Actually allow me to argue for a second that it's really NVIDIA behind this bubble and not OpenAI. OpenAI might have been the flintstone that ignited the bubble but NVIDIA has been there investing in companies that turn around and give the money back to NVIDIA.

[–] Owl@hexbear.net 44 points 3 months ago* (last edited 3 months ago) (1 children)

A bunch of nerds think it's possible to improve society through tech startups. The logic of capitalism ensures that whatever social benefit gets in the way of profit will be stripped out. But that doesn't just automatically happen because capitalism, someone has to actually be involved in the decision making process, making that happen. Sam Altman is a world champion at being that guy.

[–] BlueMagaChud@hexbear.net 41 points 3 months ago

it's a hell of a hype train when you promise a massive cut to all labor costs across the board, he's an accelerationist of the contradictions

[–] GrouchyGrouse@hexbear.net 31 points 3 months ago (1 children)

It's pretty wild how "the most rational economic system" keeps elevating these absolute goons to such dizzying heights. Imagine something like this under feudalism. Normally it takes a few centuries to Habsburg yourself into clamshell-eyed mandible men and by that time they aren't your battlefield commanders anymore. Yet here we are, flying with wax wings toward the sun and our pilot is some knees and elbows nerd.

[–] Xx_Aru_xX@hexbear.net 10 points 3 months ago

these absolute goons

[–] P1d40n3@hexbear.net 20 points 3 months ago

I figure that X goes under first. The others I think have enough cash flow to buy time, but X simply doesn't.

[–] Findom_DeLuise@hexbear.net 17 points 3 months ago (1 children)

/c/popping on standby like nicholson-yes

[–] mar_k@hexbear.net 16 points 3 months ago (2 children)

my brother kept telling me i should invest but i'm too broke for that shit

[–] FunkyStuff@hexbear.net 16 points 3 months ago

I don't know anything about anything but I'm pretty sure it's not a good time to invest regardless. Hedge fund ghouls will know the bubble's bound to pop ahead of time so shorting this when AI hype starts to die down probably won't work, and actually investing in Microsoft or whatever hoping you can cash out before people realize it's nonsense is also incredibly risky for the same reason.

Not to mention the possibility that AI isn't like crypto and it actually is here to stay. Obviously another 4 trillion parameters aren't gonna get Chat GPT to stop telling people to replace pizza sauce with glue, but there's a legitimate chance that tech goes along and pretends this garbage works. That's just how it is now.

[–] fanbois@hexbear.net 4 points 3 months ago

The stock indices have reached new records after every single crash . Because capitalism must grow. Line must go up. Because if line go down, the whole promise of return of investment goes out of the window and the thing collapses. Any money you put in the market as a whole (ETFs), will be worth more in the future than it is now. But it has to be money that you don't need to rely on in the next 15-20 years, so it's exclusively for people who are rich already.

Everything else, like picking a single stock like those GameStop idiots, is just straight up gambling. Betting on horse racing is equally as productive.

[–] AntiOutsideAktion@hexbear.net 14 points 3 months ago

Dave Anthony must answer for this

[–] IzyaKatzmann@hexbear.net 12 points 3 months ago (1 children)

Why do we need artificial intelligence we have actual intelligence

Just cuz it doesn't agree with you all the time doesnt mean it isn't good!

And actual intelligence can provide its own energy, transform energy, communicate through every language, it literally can interact with the physical world...

[–] marxisthayaca@hexbear.net 2 points 3 months ago

But actual intelligence demands unaffordable and costly things like a “liveable wage” or “bread and roses”.

[–] buh@hexbear.net 10 points 3 months ago

It's important to note,

[–] adultswim_antifa@hexbear.net 9 points 3 months ago

I think we're going to go into a remarkable bubble. It seems like we're probably in a bubble now, but I think it's just getting started and it is going to be much, much more insane in a year. But of course there's no way to predict the future. The falling rate of profit means the earnings on assets are getting smaller and that means typical PE ratios will tend to go up over time, so money will chase stocks up to very high prices in a search for yield that doesn't exist anymore.

[–] daniyeg@lemmy.ml 8 points 3 months ago

highest evaluations everyone has ever seen, the worst the tech sector has been doing with all the layoffs. they want you to be scared of AI so that the workers deem themselves less valuable and more replaceable, and giving an excuse to executives for cutting staff for short term gain. fuck these ghouls, all of them.

[–] infuziSporg@hexbear.net 6 points 3 months ago

So, was Max Azzarello close to the mark?

[–] jackmarxist@hexbear.net 5 points 3 months ago

Crypto Grift is preferable to AI.