"This whole AI cycle was fueled by fantasies, and when people stop falling for them the bubble starts to deflate. In The Guardian, John Naughton recently laid out the five stages of financial bubbles, noting AI is between stages three and four: euphoria and profit-taking."
🫧 From boom to burst, the AI bubble is only heading in one direction | John Naughton
「 At some stage a bubble gets punctured and a rapid downward curve begins as people frantically try to get out while they can. It’s not clear what will trigger this process in the AI case. It could be that governments eventually tire of having uncontrollable corporate behemoths running loose with investors’ money. Or that shareholders come to the same conclusion 」
NVIDIA made over 18 billion USD in a single quarter on datacenter products alone (so, no gaming, mobile, workstation or automotive), primarily on the embiggening of the AI bubble.
In contrast, Intel's total revenue for 2023 was around 53 billion USD and AMD's total revenue for 2023 was under 23 billion USD.
ServeTheHome: NVIDIA Blows-out Earnings as Over 83 Percent of Revenue From the AI Data Center Boom
💰 Last year, Silicon Valley was drowning in layoffs and dour predictions. Artificial intelligence made the gloom go away | The Washington Post
⎧"AI start-ups experience founder-friendly conditions not extended to the rest of the tech ecosystem." Around $12.5 billion in investments have gone into generative AI start-ups this year so far, compared with only $4.5 billion invested in the field in all of 2022 ⎭