The fact that he was even able to make that bet is incredible. How deluded do you have to be to think the AI bubble won’t burst? Keeping it going will require in ever-increasing amounts of money to paper over the gaping chasms that keep cropping up, and eventually the amount of money necessary to keep it going will cease to be feasible. Then, after taking gullible investor for all of they’ve got, the whole thing will fall over in the world’s most well deserved and predictable market crash.
The subprime mortgage collapse was inevitable only in hindsight, you had to have a good understanding of the market to see it in advance. To see the level of corruption and false promises that have to be made in order to make the mortgage bubble possible. But everyone can see the AI BS right out in the open, I’m not talking about the “how many Rs are in strawberry” questions either, I can sort of see why that’s not really a fair question. I’m talking about the fact that every single business that has ever tried to replace its employees with AI, has always failed, and failed almost immediately. Even Amazon couldn’t make it work.
I think the idea is that, whilst shorting, you get squeezed. The question is not ‘if’ but ‘when’ and if it takes too long and you’re $1B deep you can lose your shirt
I think, AI quality aside, it’s mostly a matter of timing - IMO the AI bubble is obviously going to pop, NVIDIA’s market cap is now 16% of the entire US GDP and OpenAI is trying to IPO at a trillion dollars, which seem like ludicrous numbers to me. But I learned from the last few years that you can also never really underestimate society’s ability to just say fuck it and kick the can even further down the road.
And of course, SOMETHING is going to have to be the final straw that brings it all down, and it could very well be this. But I also didn’t think we’d get this far - the 2008 crisis didn’t do it, COVID somehow didn’t do it, but these things are are also all compounding as we don’t deal with them properly. And if AI is going to be the last straw, how long can we put it off for? Could it pop next year or can we still hold it off for another decade with even more ludicrous number-fuckery? I think that’s where the trick is going to be.
How AI use erodes skills in the subject AI is being used to assist in. This is a 100% occurrence, and has been demonstrated across all industries from software developers to radiologists. Most experience a 10-20% erosion in their skill set within the first 12 months of AI use, but others in the study groups have seen up to a 40% erosion in their skill sets.
How AI use shuts down critical thinking, and makes users more stupid. This is a 100% occurrence, and has been clearly demonstrated by MRI scans of the prefrontal cortex while users are actively using AI.
How AI use makes the user slower. This is the only user point that is not 100%, as only less than 2% of the most senior and skilled users show a slight increase in work completed… after more than 12 months of using AI. Projections have been made on the other 98%, and over 90% of them will never work faster with AI than without it, regardless of training or experience.
The gratuitous hallucinations, which are only increasing in scope and severity with every AI generation. It arises entirely from the constraints the AI are rewarded with - providing no answer is weighted just as negatively as a wrong answer - and anywhere from 60-80% of all responses are hallucinatory or incorrect in some fashion, depending on the current model.
In prior generations, any industry with such performance would be laughed clear out of the boardroom.
But because capitalism is desperately seeking a solution to what they perceive as a problem - how to obtain labour without having to pay said labour - AI is being adopted hand-over-fist.
After all, the underlying purpose of AI is to allow wealth to access skill while removing from the skilled the ability to access wealth.
All this you listed is the reason why we are fucked if we keep depending more and more on “this” AI and don’t get a revolution in the AI field to replace the current one with AGI. Because in ten years we risk losing a big chunk of expertise and if we don’t have an AI that can really replace the current one with something that can actually replace experts then there will huge infrastructure problems across multiple industries.
Rich dumbasses found a place to waste all their money instead of the government taxing them and using that money for important things. they let them waste it on some climate change accelerator
The fact that he was even able to make that bet is incredible. How deluded do you have to be to think the AI bubble won’t burst? Keeping it going will require in ever-increasing amounts of money to paper over the gaping chasms that keep cropping up, and eventually the amount of money necessary to keep it going will cease to be feasible. Then, after taking gullible investor for all of they’ve got, the whole thing will fall over in the world’s most well deserved and predictable market crash.
The subprime mortgage collapse was inevitable only in hindsight, you had to have a good understanding of the market to see it in advance. To see the level of corruption and false promises that have to be made in order to make the mortgage bubble possible. But everyone can see the AI BS right out in the open, I’m not talking about the “how many Rs are in strawberry” questions either, I can sort of see why that’s not really a fair question. I’m talking about the fact that every single business that has ever tried to replace its employees with AI, has always failed, and failed almost immediately. Even Amazon couldn’t make it work.
I think the idea is that, whilst shorting, you get squeezed. The question is not ‘if’ but ‘when’ and if it takes too long and you’re $1B deep you can lose your shirt
I think, AI quality aside, it’s mostly a matter of timing - IMO the AI bubble is obviously going to pop, NVIDIA’s market cap is now 16% of the entire US GDP and OpenAI is trying to IPO at a trillion dollars, which seem like ludicrous numbers to me. But I learned from the last few years that you can also never really underestimate society’s ability to just say fuck it and kick the can even further down the road.
And of course, SOMETHING is going to have to be the final straw that brings it all down, and it could very well be this. But I also didn’t think we’d get this far - the 2008 crisis didn’t do it, COVID somehow didn’t do it, but these things are are also all compounding as we don’t deal with them properly. And if AI is going to be the last straw, how long can we put it off for? Could it pop next year or can we still hold it off for another decade with even more ludicrous number-fuckery? I think that’s where the trick is going to be.
To me it is four things in particular:
In prior generations, any industry with such performance would be laughed clear out of the boardroom.
But because capitalism is desperately seeking a solution to what they perceive as a problem - how to obtain labour without having to pay said labour - AI is being adopted hand-over-fist.
After all, the underlying purpose of AI is to allow wealth to access skill while removing from the skilled the ability to access wealth.
Do you have references for these claims? I believe you, but I’d like to know more.
All this you listed is the reason why we are fucked if we keep depending more and more on “this” AI and don’t get a revolution in the AI field to replace the current one with AGI. Because in ten years we risk losing a big chunk of expertise and if we don’t have an AI that can really replace the current one with something that can actually replace experts then there will huge infrastructure problems across multiple industries.
Rich dumbasses found a place to waste all their money instead of the government taxing them and using that money for important things. they let them waste it on some climate change accelerator