Posted on 08/02/2024 6:27:35 AM PDT by yesthatjallen
An increasing number of Silicon Valley investors and Wall Street analysts are starting to ring the alarm bells over the countless billions of dollars being invested in AI, an overconfidence they warn could result in a massive bubble.
As the Washington Post reports, investment bankers are singing a dramatically different tune than last year, a period marked by tremendous hype surrounding AI, and are instead starting to become wary of Big Tech's ability to actually turn the tech into a profitable business.
"Despite its expensive price tag, the technology is nowhere near where it needs to be in order to be useful," Goldman Sach's most senior stock analyst Jim Covello wrote in a report last month. "Overbuilding things the world doesn’t have use for, or is not ready for, typically ends badly."
Earlier this week, Google released its second-quarter earnings, failing to impress investors with razor-thin profit margins and surging costs related to training AI models. Capital expenditures are surging far past what the company had been spending previously, as the Wall Street Journal reports, with this year's total spend expected to surpass $49 billion, or 84 percent higher than what the company averaged over the last five years.
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(Excerpt) Read more at futurism.com ...
AI is not Intelligence
It’s still surprising to me that investors can be herd-like and collectively stupid.
Maybe they should call it Artificial Stupidity.
Maybe AI will be able to crank-out bitcoin.
That might keep the “investors” happy.
Markets will develop in education, finance and crime fighting.
Just look at the rush to invest in fusion scams.
Like the internet itself - it will probably take a decade for useful, every-day applications to come to the fore, and for companies who are the “winners” to clearly rise above their peers
Ha ha. I knew ai is only as good as the human behind it. It is a tool, nothing more.
Wait maybe AI has more intelligence than the Investors ,LOL
I never use AI to write material for my website (coin related) or anything else. I don’t need it and don’t trust it to do the job the way I want it done.
I’m just saying....Amazon was a bust when it first appeared.
Oh, and it is making a lot of money - for those selling it to suckers.
Sounds like kamalatoe;-)
AI works well for many things but integration can be hard and there has to be. a rigorous certification in the integration of all mission critical applications
This is time consuming and requires a lot of engineering .
The purpose of writers for financial articles is to create uncertainty so that investors will seek out self described experts to help them invest at a high cost.
Like shampoo, rinse and repeat. Or in investment lingo, churn baby churn.
I heard McDonald’s ordering AI was right out of Monty Python ,LOL
AI can replace all leftist talking and writing heads right now.
Spewing DNC talking points should be within its current capability.
AI is overrAIted. ;)
And, the costs is not only in implementing the thing; the costs of energy requirements say that, the world would have to double the amount of energy being generated in order to make AI work. People are not ready to spend so much more, and environmentalists would take to the streets to stop the madness. Green energy would have to give way to a lot more ‘fossil-fuels’ usage.
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