Concerns about the sustainability and profitability of AI investments, leading to potential market corrections

Signals over time

3 observed signals across 1 sources, tracked for 1 days. Confidence: low.

What people are saying Observed

• “Ha! 10-15 years ago, I wouldn't have used it that way either. But the stock markets these days just feel entirely speculative. It is not clear to me if individuals are buying these AI stocks based on their expected future revenue/profit or the whole space is just momentum plays and the funds are directly being transferred back to the companies (by way of incentive packages and ability to get loans based on market valuations) to keep the train moving, despite there being no clear profitable destination for any of the LLM sellers. The hardware folks are making out like bandits, though.”

  Hacker News · frustration

• “> DeepSeek, and other Chinese models, are heavily subsidised by the Chinese government. Yes, because everything China does is against the US. That's all they think about day and night. God forbid they want to corner the global market or have a genuine business case. How dare they provide options for those who can't afford a measly $200 a month? How can we let Chinese labs publish research for free for the whole world so that they can benefit? The nerve! To think they can use soft power instead of military might! I mean, Anthropic and OpenAI are the last bastions of human kindness and charity. Right? Right?”

  Hacker News · frustration

• “> consumers and companies paying AI ridiculous sums for AI. VCs are paying ridiculous sums for AI. Consumers are not - we get tokens subsidised by VCs. > if this is all a bubble Interesting to see that revenue growth for both Anthropic and OpenAI has levelled off recently. Once this fact percolates through to the VCs, it's going to cause problems. All those valuations are based on projections of vastly greater revenue than they're getting now (and, ofc, achieving AGI and "winning" everything immediately that happens). This is looking less and less likely - the current batch of AIs are very, very, useful tools, but as we learn how to use them commercially they're not generating those limitless revenues that were anticipated. This tech, like all the rest, will go through the Gartner Hype Cycle, and that includes the Trough of Despair where it all looks shit and the bubble pops. I think we're approaching that rapidly.”

  Hacker News · frustration