@Prove_your_argument@piefed.social
Post #1090985
2026-04-03 15:57 UTC
Replies (2)
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@Iusedtobeanalien@lemmy.world 2026-04-05 06:33
markets are now starting to punish tech companies that overextend on AI, a realisation has rapidly kicked in that Al is far from profitable. Winter is coming
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@NuXCOM_90Percent@lemmy.zip 2026-04-03 16:14
> Think about the dotcom bubble. We went from having all of these businesses that shot to the moon for valuation… and then it collapsed. Amazon and Google and basically all of FAANG/MAMA beg to differ. And basically every company still has a website and ecommerce in general is still massive. The Dot Com bubble was brutal. But it was not a collapse of the industry. It was much more of a correction after so many companies blew up to sell services like "rate my dog" and many of the smaller ecommerce sites were absorbed by larger ones. And that is likely what will happen with generative AI. I expect a MUCH bigger bloodbath for openai but anthropic seem to have scaled a lot better (although they also are going into their IPO with a massive data breach...). But expect most of the smaller companies to similarly get gutted. But > Makes sense. It takes years to complete construction projects and budgets always overrun. AI is a fad for most companies trying to get into it. Data Centers exploding... honestly have little to do with AI. No... not the way they explode in the UAE... metaphorical exploding. The reality is that data centers are GOOD money. Basically every company needs data hosting and offloading internal infrastructure is... honestly a really smart play. Same with the massive push for streaming of basically everything so that nobody owns anything and subscribe to everything. You want regional data centers and... this is how you get them.