Fuck AI

The market for AI is not a valid product. It's the highest level we've ever gotten for snake oil. And for some reason the top businesses are all grabbing the bait, I guess for fear of being left behind if it actually becomes a real thing. Or maybe corporate America is really that stupid. I can't tell.

If the market gets spooked, it doesn’t matter what CEOs do. The companies burning is the bubble popping. See the dot-com or the prime-mortgage bubbles.

It always starts with a little wobble that causes investors to pause and wonder if all the hyper optimism is maybe unfounded and start to look at the fundamentals. Then they realize the emperor has no clothes and the bull turns into a bear.

Not saying that Coreweave is that wobble; many analysts and pundits will try to sweep it under the rug to maintain the irrational exuberance, but once sentiment starts to turn, it can happen fast… pop!

As long as there are investors with more money than brains there will be bubbles

So... Death of capitalism then?

Because I know you're not thinking people will learn the lesson.

Do you mean that; TechBros will be more responsible in the future? Or Society will collapse?

Also, gotta start to tighten the belt in Q3 so the Q4 numbers can look good for the shareholders

I very much beg to differ. I remember it very well, as the company I worked for laid off almost all of their workers and it was impossible to find a job. All companies froze hiring. People lost fortunes (including retirement accounts). The nasdaq went from 4800 to 1840. There was a major recession.

The amount of malinvestment in AI is so much worse than the Internet bubble. It's basically the only reason the US economy didn't contract hard the last few months. Making data centers for AI has been creating a lot of construction jobs.

It's going to be painful when it pops, and it needs to happen sooner rather than later.

maybe you didn't live in a city that had a lot of the Internet start-ups, but the Internet bubble was felt by millions of people. I lived in Seattle and it had a lasting impact on everything.

The dotcom bubble destroyed a lot of retirement accounts people had no ability to choose the companies invested in as they were often generic, broad, investment portfolios. It also killed a lot of lower end white collar jobs, and damaged a lot of local government investments, leading to steep declines in those services. There are numerous other ways non-tech people were affected, but I don't feel like writing a bunch.

I am interested to know how old you were when that dotcom bubble popped, though.

The Internet bubble popped in 2000. It didn't change anything for anyone unless you happened to be a CEO of a dotcom with millions of shares.

Or you were close to retirement and your pension fund just cratered.

Stop looking at the business class. Those assholes have each other's backs. Look down to the ordinary people and see the damage done that nobody bothers reporting on.

The dotcom bubble pop took out a lot of funds and a lot of businesses. A lot of things you could buy on the Internet stopped being available online for a bit as so many vendors tanked. Ultimately the equivalent of almost everything you would have remembered came back, but there was a retreat.