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Posted on 10/10/2026 2:23:07 AM PDT by Mount Athos
Technology giants spend hundreds of billions of dollars on AI, financed with debt.
Equity valuations continue to rise, with optimism over technology earnings propelling the S&P 500 and Nasdaq 100 indexes to record highs this week.
The only question now is who survives when the bubble bursts and how much of the real economy it takes down with it.
Everyone from Big Tech to Wall Street is gambling on AI like it’s a sure thing, but the cracks are already showing. Nearly every major company pouring billions into generative AI still hasn’t seen a real return.
The experts say that this time it’s different. But is it?
Most agree that the warning signs are all there: massive investments backed by a whole lotta hype, self, and tech valuations that don’t come close to reality.
AI can be useful, impressive, and absolutely part of the future while still being wildly overpriced today. Those two things can both be true.
Because right now everybody’s running around acting like there’s no ceiling or bad bet, and no point where the spending gets ridiculous.
Most normal Americans never signed up for any of these massive AI bets. They didn’t decide to dump billions into data centers, chips, and an arms race between tech giants.
But they could still get stuck with the fallout.
It looks like the rest of the country will still be forced to cover their losses.
The AI revolution might change so much about the world, but that doesn’t mean investors didn’t wildly overpay for it along the way.
(Excerpt) Read more at revolver.news ...
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Its sounding like the 90’s tech bubble that burst so dramatically. I know I lost bunches because back then there were “no bad bets”.
This time its not driven by little guys but by Big Boys who will drag everyone down when the DOW dumps 25 or 30k.
‘Anyone using ‘AI’ instead of SI is the enemy.’
One way to tell you have a bad investment is when your company’s only product is a Power Point presentation - especially if it has hockey-stick graphs.
I take a middle of the road. All innovations are like the Tulip bubbles. Those who invest too much lose out. However, over time, as we work to understand the innovation, we add to it. Right now, and Im only making a point, AI might only only be able to do two choices, which mathematically is foyr possibilities. At some point, we will enable it to make 3 choices, which becomes 9 possibilities. Then 4 choices, which makes 16 choices. Over time, that might become thousands of possibilities as we come to understand this technology.
Long term, AI will probably become quite capable.
A search engine on steroids...
Given AI's propensity to just lie and make up data to support its conclusions, I always thought this approach very dubious. Let's see what happens when the federal regulators dig into those regulatory reports the banks have filed. I suspect they will find all kinds of discrepancies and the banks will be in big trouble. Then there will be a mad scramble by the banks to rehire all the humans the who previously handled things to not only take control back, but to also forensically dig in to everything AI has done for the last 2 years and fix it all.
I just hope that happens before all the former employees and contractors go broke first because they haven't been able to find jobs for the last couple years.
As an aside, I think Tolkien was slowly working to the conclusion that all beings that were mockeries of the Eru’s creations, like orcs, and trolls were actually artificial forms of life, because only Eru can give life. Any other creation, no matter how closely it replicates life, is not life. Even if it does literally everything a life form can do, even replication.
As an aside, I think Tolkien was slowly working to the conclusion that all beings that were mockeries of the Eru’s creations, like orcs, and trolls were actually artificial forms of life, because only Eru can give life. Any other creation, no matter how closely it replicates life, is not life. Even if it does literally everything a life form can do, even replication.
The Dot Com bubble did lead to a crash in the short term but in the long term it ended up having a lot of benefits for the economy and technology. I wouldn’t be surprised if that happens again. Its not like Ai is going to be completely useless.
I bet we all know people who when the weather a particular day could be absolutely perfect, will say, yeah but it’s going rain and be crappy tomorrow.
IMO, there is no question that some of the companies involved in this AI/SI expansion will die off and either go out of business or get absorbed into those companies who survive.
That sort of rapid expansion and then contraction is nothing new, it’s happened in a bunch industry.
Thats a naive take. Teenagers in schools may it in that fashion but its far more useful than that. The applications for data absorption , task driven direction and analysis are endless.
AI is going no where.
Not even up?
The only thing naive was you not getting it.
That may mean the party is moving on to something else.
Canadian liberals are the same. They walked away from the trade deal because three Quebec seats were up for election. They were willing to risk Canada’s privileged position with the US and make Canada just another nation in order to win an election.
https://rumble.com/shorts/v7gclxc
Great line from Ed dowd.
People say AI is going to be the end of hummanity.
But, AI can’t spare 10 seconds to root out and eliminate gubmint corruption
Search engine with a different kind of bias
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