The Impending AI Bubble Burst: What’s Next?
As the AI industry faces a potential collapse, experts foresee critical aftershocks affecting investors and technology creators alike. The hype around AI, fueled by massive investments and grand promises, may leave behind:
- Cheap GPUs: Once valued technologies available for a fraction of their cost.
- Skilled Professionals: Applied statisticians and developers ready to optimize existing open-source models.
- Open Source Innovations: Models that have proven impressive, even without extensive resources.
Key Insights:
- Exaggerated Valuations: AI companies have misrepresented earnings versus expenditure, with revenue projected at a mere $45 billion annually against investments totaling nearly $1 trillion.
- Short Lifecycle: The high-end GPUs powering AI tools burn out quickly, often within 2-3 years or even as little as 54 days under heavy use.
- Bubbles Have Consequences: The AI bubble may result in a broader economic crash, affecting not only tech companies but everyday consumers.
The future post-bubble might be bleak but carries the potential for innovation. Let’s embrace the conversation! Share your thoughts below.
