Comment Re:Macroeconomics 101 (Score 2) 78
This is not a bubble. This is going to be the way of things for a while. The economic activity AI is producing is going exponentially, and the inputs are trivial vs the future productivity. These are the facts. DRAM, GPUs and the infrastructure to power them just got slammed with a huge demand, which WILL drive up the cost. Thats not inflation, thats normal supply/demand curves coming into balance. Inflation is when all things rise equally. Here, these components are rising faster than the overall cost of things in the marketplace (though there is going to be spillover as many non-involved things have to pay for the increases to maintain their requisite supply (smartphones in this case).
AI investment is growing exponentially and has been for some time. Meanwhile, AI productivity is already slowing, and shows further signs that as we move forward it will slow still more. While tech companies are attempting to shovel more of it at the businesses and end-users that rely on them, there's only so much the current LLM driven systems are going to be able to accomplish without some massive change in basic operation that, thus far, doesn't appear to be happening. And while they continue to rake in investment money to continue to build out infrastructure for the fantasized giant leap forward in productivity that LLM driven systems are supposed to provide us, even *IF*, and that's a might giant if, but if they managed to accomplish *EVERY* goal the companies behind them are promising they would be able to accomplish, there is still no chance at all that they will be able to generate enough revenue to ultimate pay for the expenditure.
Do I think there is some potential in the current LLM obsession to create future productivity gains? Yes. Do I believe that anyone involved in it is holding a realistic view of how far that productivity gain will actually take us? Absolutely, positively not. This is a bubble. A bubble built on fantasy that has a foundation of bullshit mixed heavily with snake oil. And when the "correction" comes, it's going to be so much like a bubble popping that most will not be able to tell the difference.
I know, our world doesn't much care about reality these days, but reality has a funny way of reasserting itself in the most brutal and cold ways. And the longer and harder people try to fight it, the more implosively it collapses on them when it finally does come back to them. At the rate we're going, attempting to tie up the entire economy in the hype cycle, we're gonna make the economic implosion make the Titan Submersible look like a kid's game gone a tiny bit wrong.