Of course AI is a bubble. It has all the hallmarks of a classic tech bubble. Pick up a rental car at SFO and drive in either direction on the 101 – north to San Francisco, south to Palo Alto – and …
A point the article makes rather well is that something is not a bobble because it doesn’t work, but because the investment going into it is fundamentally irrational in scale. The web still existing has nothing to do if investment or companies tripping over themselves to advertise as a dotcom in the dotcom bobble was rational, because it clearly wasn’t.
The question when it comes to LLM’s, the near exclusive subject of the marketing around AI, is if bunch of random companies paying for a mildly improved chat bot going to actually generate enough profit once the marketing hype has worn off and the legal questions are all settled is actually enough to generate the massive profits needed to justify the current investment.
A point the article makes rather well is that something is not a bobble because it doesn’t work, but because the investment going into it is fundamentally irrational in scale. The web still existing has nothing to do if investment or companies tripping over themselves to advertise as a dotcom in the dotcom bobble was rational, because it clearly wasn’t.
The question when it comes to LLM’s, the near exclusive subject of the marketing around AI, is if bunch of random companies paying for a mildly improved chat bot going to actually generate enough profit once the marketing hype has worn off and the legal questions are all settled is actually enough to generate the massive profits needed to justify the current investment.