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Confirming Ed Zitron's careful analysis of the situation with SoftBank, Microsoft, and OpenAI: https://www.wheresyoured.at/optimistic-cowardice/ https://www.whe
by cratermoon 2y ago
Confirming Ed Zitron's careful analysis of the situation with SoftBank, Microsoft, and OpenAI: https://www.wheresyoured.at/optimistic-cowardice/ https://www.wheresyoured.at/optimistic-cowardice/.
"Outside of NVIDIA, nobody is making any profit off of generative AI, and once that narrative fully takes hold, I fear a cascade of events that gores a hole in the side of the stock market and leads to tens of thousands of people losing their jobs."
You'll note that the prospect story mentions Zitron multiple times.
- bfrog 2y agoA clear eyed take, Nvidia is reaping the benefits of this new rush for now.
- hotpepperishot 2y ago[dead]
- alephnerd 2y agoThere is a move towards software again, as ime a lot of the "AI" oriented investment was around hardware [0]. In my opinion, it was a side effect of how hardware became sexy again as an investment story, though in action, the fabless players like Nvidia and the diversified players like Broadcom that could take full advantage of that "AI" and "Hardware" story because of better margins. I've also been very open about my opinions that companies that sell a foundational model cannot build a strong long term moat, as an overtrained or specialized models will outcompete foundational models in PoCs and domain specific applications, and the actual hardware needed isn't that exhorbitant as DeepSeek has shown (that said I don't think they spent $6m - it was probably in the $20-50m range, but even then fairly reasonable for most organizations). [0] - https://www.reuters.com/technology/artificial-intelligence/us-chip-darlings-struggle-some-bet-software-next-big-ai-play-2025-03-06/ https://www.reuters.com/technology/artificial-intelligence/u...