The AI emperor has no clothes
3 hours ago
- #Dot-com Comparison
- #AI Bubble
- #Tech Hype
- The AI bubble is nearing its peak, evidenced by the high volume of AI-related job offers, product reviews, paid sponsorships, and creator representation offers.
- Current AI valuations in the trillions are unsustainable and unlikely to be justified by future profits.
- While there are legitimate use cases for AI and machine learning, they are overshadowed by overhyped, often useless or expensive products.
- Hardware advancements are slowing down, making it harder to achieve significant improvements in model training.
- The AI bubble's longevity is uncertain—it could burst soon or persist for several more years.
- New AI tools and services are continuously emerging, sustaining the hype and keeping the market exuberant.
- Many AI tools are adopting a 'credits' pricing model, charging users per use, which appears to be gaining traction.
- Comparisons to the dot-com bubble suggest that while there is hype, AI, like the internet, may have long-term value beyond current overvaluations.
- The time value of money is a critical factor—current overvaluations don't negate potential future growth, but they do indicate present hype.