Are We in an A.I. Bubble? I Suspect So
5 hours ago
- #technology regulation
- #AI skepticism
- #financial bubbles
- The author is a skeptic of technology, particularly in finance, making them a poor fit for venture capitalism.
- They hold a moderate view on AI, seeing potential in automation but worrying about fraud, art quality, and education impacts.
- They doubt the feasibility of Artificial General Intelligence (AGI) or super-intelligence, citing physical constraints like electricity and training data shortages.
- The AI industry may be in a bubble, with investments driven by decelerating advances rather than genuine progress.
- Financial schemes among major AI players resemble a Ponzi scheme, raising concerns about sustainability.
- The author suggests minimal direct intervention by policymakers, referencing Alan Greenspan's approach to the dot-com bubble.
- Potential financial risks include hidden leverage in data center financing, similar to the subprime mortgage crisis.
- Regulators could mitigate risks by ensuring banks and insurers are adequately capitalized against their exposures.
- The current administration is unlikely to address these financial risks proactively.