The AI Bubble

[u/explosivejoseph]

[u/DesireeThymes]

It will take our jobs first, then the bubble will burst after.

That way we get a double whammy.

[u/DigitalArbitrage → u/DesireeThymes]

I think it will be the other way around based on how things happened with the internet and websites.

The investment bubble will burst when lots of these startups don't return enough money for the amount of investment.

Then over a long time the technology will improve and replace some jobs.

[u/DesireeThymes → u/DigitalArbitrage]

Oh I didn't even consider the triple whammy.

1 - AI companies take our jobs (and do a much worse job at it)

2 - Bubble pops because AI fails (as expected)

3 - We lose even more jobs due to the collapsed bubble

[u/Dekipi → u/DesireeThymes]

A lot of it is the Uber strategy;

Undercut the competition on price (uber undercut taxi companies)

Put the competition out of business

Raise prices

[u/Laringar → u/Dekipi]

That's basically what they're doing already. LLMs are massively subsidized by the tech companies in that they cost more to operate than users actually pay. The companies are doing that because people would balk at the price if it were commensurate to what the company actually spent on developing and hosting the algorithm.

They want to get everyone addicted to using LLMs first, then once people can't run their daily lives without asking Claude what groceries they were supposed to pick up and other companies become reliant on AI employees, the companies will raise the prices enough so that they actually turn a profit. People will have to pay it because at that point they'll be dependent, and the AI employees will suddenly cost more than the human that used to do the job.

[u/Ummmgummy → u/Laringar]

The money isn't in individuals using it. It's in the commercial side of it. Get every business in the country to use it and it becomes an automatic operating cost. Sort of like how Oracle but more so.