> I hear the complaints from the tech giants already: "But we bought too many GPUs! We spent billions on infrastructure! They have to be put to work!"
> Not my problem.
I don't know about the author specifically, but the bubble popping is a very bad thing for many people.
People keep saying that this bubble isn't so bad because it's concentrated on the balance sheet of very deep pocketed tech companies who can survive the crash.
I think that is basically true, but a lot is riding on the stock valuations of these big tech companies and lots of bad stuff will happen when these crash.
It's obviously bad for the people holding these stocks, but I these tech stocks are so big that there is a real risk of widespread contagion.
The only thing worse than popping the AI bubble is trying to inflate it even larger with a government bailout. The longer the government tries to protect the bubble, the more extreme and destructive the level of capital misallocation is going to become. They should have popped it years ago before we were trying to build nuclear reactors to keep our internet chatbots from taking down the power grid.
> Not my problem.
I don't know about the author specifically, but the bubble popping is a very bad thing for many people. People keep saying that this bubble isn't so bad because it's concentrated on the balance sheet of very deep pocketed tech companies who can survive the crash. I think that is basically true, but a lot is riding on the stock valuations of these big tech companies and lots of bad stuff will happen when these crash. It's obviously bad for the people holding these stocks, but I these tech stocks are so big that there is a real risk of widespread contagion.