Upvote because can someone explain to someone as dense as me, whether or not this is likely to make some likely AI bubble worse? Is this just how industry allocates capital?
The money between OpenAI, Nvidia, Oracle, AMD is not circulating. There is no cashflow, only future commitments that may (and quite likely will) collapse. Yet the stock market & media react as if it's a sure thing. Even in the criticisms of these deals, the hype is affirmed.
This is the same problem as Enron's accounting, minus the fraud. (No need for fraudulent accounting when people simply don't read the fine print.)
Bubble's only bad if you get out at the wrong time.
Now once these folks don't get 800B per year in revenue and the money runs out, all of the banks go as well. But don't worry - they'll get bailed out with our money...
Is it worse than the dot-com bubble? I remember everyone and their mom who knew HTML could get hired, and there were way more companies that went IPO during the dot-com bubble, like theglobe.com.
AI is a bubble, but is it worse than the dot-com bubble or the real estate bubble in 2008?
IDK, the number of companies and employees might be smaller, but the valuations and comp packages are so much bigger that I suspect there's more money in the bubble this time around, just a bit less spread out.