3 ms·
Isn’t your first paragraph essentially describing a bubble? Albeit as a tautology. NVIDIA have high revenue right now because everyone is suddenly chasing the
by dagmx 3y ago
Isn’t your first paragraph essentially describing a bubble? Albeit as a tautology.
NVIDIA have high revenue right now because everyone is suddenly chasing the AI bubble. There hasn’t really been a product shift on their end to cause this, rather the bubble formed coincidentally around their compute libs prevalence that’s been laying the groundwork for almost two decades .
their high profit is well deserved but the sudden ramp is the bubble.
When will it pop is the question? I think that’s when a lot of these smaller companies fail to produce a viable product and the bigger ones get fed up of the high margins.
But I think NV will come out on top regardless, because a pop will still place them pretty high.
- MrBuddyCasino 3y agoYeah. „Shovel seller makes record profit“ is not exactly a refutation of a gold rush.
- gojomo 3y ago'Bubbles' and 'gold rushes' are different things.
- MrBuddyCasino 3y agoNot really.
- dagmx 3y agoIn what sense? The gold rush precipitates the bubble.
- d1sxeyes 3y agoOnce everyone has a shovel, or enough people have mined enough gold, either the demand for shovels or gold will collapse. A savvy shovel seller will be aware of that, but it sounds a lot like a bubble to me.
- gojomo 3y agoBut when the gold rush is reaching a newly-discovered lode, at the end, there's real new gold! That they both eventually exhaust doesn't make them the same; one is fumes, the other involves a real expansion in the stock of usable resources. People's cynicism here has them ignoring real enduring positive shocks in the economy – even though that's been the nonstop history of our tech industry. A few suppliers transient stock valuations may be, at times, a 'bubble'. But the fundamental (& irreversible advances) in AI technology aren't the bubble.
- rsynnott 3y agoI mean, they're not the _same_ thing, but they're a closely related phenomenon. And certainly you have parallel shovel-sellers in the dot-com bubble (notably Sun Microsystems).
- boshalfoshal 3y agoFair enough - I just think this "bubble" has decent utility (arguably better than crypto, for example), and saying "AI" itself is a bubble, as the title proclaims, is something I disagree with. ChatGPT and generative models being a panacea for every company, sure I can concede that its a bubble. Like I said, it has yet to be seen how AI "consumer" companies will make more money and/or increase margins with generative AI products.
- noobermin 3y agoComparing it crypto says a lot.
- rapsey 3y agoAnyone comparing AI to crypto has too short of a memory or too uneducated to provide value to the discussion.
- noobermin 3y agoI am alluding to the fact a lot of the bubble blowers are former crypto hanger ons and orbiters who now want a slice of this pie too. Anytime anyone compares AI to crypto you get the sense that person sees those technologies as similar because it serves a similar purpose for them, which as you said makes no sense if one had a clear mind about it and is thinking about the technical details.
- rapsey 3y agoBubble blowers are the major companies and VCs spending billions. Money, where it is coming from and where it is going is relevant, not who is yapping on Twitter.
- dagmx 3y agoI don’t think AI and crypto are comparable other than the hype cycle. Crypto legitimately hasn’t found a use case, whereas various ML/AI models are already somewhat useful. The big issue is: what is the product at the end of the tunnel? The really cool stuff is still too unreliable for day to day use because it hallucinates things. The cost to scale is also really high.
- deleted 3y ago[deleted]