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GenAI financing is a flat circle. The bubble bursting is going to have a huge blast radius.
by candiddevmike 1y ago
GenAI financing is a flat circle. The bubble bursting is going to have a huge blast radius.
- lesuorac 1y agoThey survived the dot-com bubble, I don't see the AI bubble taking out Amazon. It might take out your 401k for a decade.
- noir_lord 1y agoI'm on like my fifth once in a generation financial crisis. At a certain point you just expect it.
- gruez 1y agoHow are you getting 5? In recent memory, there's only 3: dotcom bubble (2000), GFC (2008), covid (2020). You'd either have to go back in time even more (eg. savings and loan crisis in the 80s/90s), or include regional ones (eg. eurozone crisis) to hit 5.
- tadfisher 1y agoMaybe they had strong exposure to Worldcom or Enron?
- lesuorac 1y agoAre you counting eurozone as 2011? I think it counts enough as American if it caused a downgrade in the USG's credit rating. [1]: https://en.wikipedia.org/wiki/August_2011_stock_markets_fall https://en.wikipedia.org/wiki/August_2011_stock_markets_fall
- adolph 1y ago. . . once in a [news media financial analyst] generation financial crisis. Its like fruit fly generations, not 20-30 year human cohort generations.
- grogenaut 1y agoIf you were 100 then you'd be right on pace. Or slightly ahead. Apparently a generation is 25-30 years. I think they should update that
- thewebguyd 1y agoI don't think anyone is expecting Amazon (or Google or Microsoft for that matter) to be taken out by the AI bubble. I would expect to see OpenAI, Anthropic, and a lot of the little tool wrappers to get taken out though, or at least acquired for pennies on the dollar when it bursts. But like the last one, it's going to be us, the tax payers, that are left holding the bag.
- jcheng 1y agoWhy taxpayers? Where’s the systemic risk in AI labs getting acquired for cents on the dollar? The taxpayers weren’t holding the bag during the dot com crash, just investors.
- thewebguyd 1y agoDuring the dot com crash, none of the companies were "too big to fail" This is looking more like 2008 than dotcom, the entire market is being propped up by basically Nvidia. US GOV is likely to bail them out for "national security"
- almostgotcaught 1y agothis is the latest mantra from people who have missed the boat. i'm like lol do you think that industry didn't learn anything (about financing structures) from the last one?