this post was submitted on 22 Jan 2026
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This is clearly a bubble.
I don't care if AI is useful, it's not this useful. And it sure as shit isn't going to see the returns they expect.
I run an internal multi-user AI app. It plugs into almost everyone's workflows to make things easier (fetches documents, pulls data, contextualizes stuff). It costs $1 per day per user in token costs .
You need a trillion people using these apps for the current valuations to make sense.
My guess is they are using the Netflix playbook all over again.
Get you hooked to the extreme convenience, much like a drug addict, and then pump up the price or flood every prompt with ads.
That's my best case.
Worse case is, that alongside the rising adoption, they will start surreptitiously but effectively modifying general knowledge, thought and behaviour in ways the ~~worst~~ best Marketer would blush about.
Get you hooked to the extreme convenience, much like a drug addict, and then pump up the price or flood every prompt with ads.
There is a big difference between "normal" SaaS and LLM.
In a normal SaaS you get a lot of benefit of being at scale. Going from 1000 to 10000 users is not that much harder than going from 10000 to 1000000. Once you have your scaling set up you can just add more servers and/or data centers. But most importantly, the cost per user goes waaay down.
With AI it just doesn't scale at all, the 500000th user will most likely cost as much as the 5th. So doing a netflix/spotify/etc, I don't think is going to work unless they can somehow make it a lot cheaper per user. OpenAI fails to turn a profit even on their most expensive tiers.
Edit: to clarify, obviously you get some small benefits from being at scale. Better negotiations and already having server racks, etc. But those same benefits a traditionsl SaaS gets as well, and so much more that LLM doesn't, because the cost per user doesn't drop.
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then pump up the price or flood every prompt with ads.
"Sure I found that document you needed, and with it, I also found this great new game I know you'll love. Raid: Shadow Legends, It's a free to pla..."
I cannot wait for companies spending 300 dollars per user per month for this convenience.
If it's this useful, we're (and them) fucked too because the economy would collapse under falling aggregate demand due to falling wages and layoffs. The "people will find new jobs" won't save us from a shift this large without a depression. And all sorts of things happen during depressions.
I'm struggling to find a scenario in which we are not already fucked. I say we "go for broke" and move on.
Pop this thing.
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So...
It's not a bubble because...
"This is the largest infrastructure build-out in human history," Huang said of active and promised data center projects. "And so the AI bubble is, comes about because the investments are large. And the investments are large, because we have to build the infrastructure necessary for all of the layers of AI above it."
It's something we're sinking money into soley because we've already been sinking money into it, and we don't want anyone else to get ahead of us even though literally no one has found a way to monetize it enough to make back prior investments let alone new investments...
Like, he knows that's literally the definition of an economic bubble, right?
Is he just trying to grift dumb rich investors, or does he legitimately not understand his company could go bankrupt literally at any moment if the investor class ever comes back to reality?
Well nVidia just sells the hardware to the AI companies, so even if the bubble pops, they won't go bankrupt. They will stop making such obscene amounts of money, but they're one (also the largest) of the 3 major GPU vendors. Personal computing still would buy from them, as would non-AI datacenters. He wants to keep the bubble going for as long as possible to boost their profits for as long as he can, but as long as people need graphical rendering and parallel compute power, I don't think nVidia is going anywhere.
Think of them as the guy selling prospectors their tools. They hype everything up and jack up their prices for picks and shovels. When the prospectors don't find any gold to make their investment back, the shovel guy just goes back to selling shovels at normal rates and prices. Sure, he's not making as much profit, but he's still solidly in business.
Well nVidia just sells the hardware to the AI companies, so even if the bubble pops, they won’t go bankrupt.
Except all those companies are in an investor circle jerk with each other...
If AI bursts it doesn't just hurt nvidia's sales of products used by AI.
Nvidia has over $100 billion invested in OpenAI:
https://www.cnbc.com/2025/09/26/nvidias-investment-portfolio.html
And even more billions invested in other AI companies. Because the AI companies can't afford to buy what Nvidia is selling at the price.
This means Nvidia "owns" a bunch of those AI companies, and can take loans out on the valuation...
If AI goes bankrupt, all those investments are worthless, which means banks call in the loans that used it as collateral. It could easily wipe out Nvidia.
It's not just one surface level thing, even tho that's all you seem to have thought of. You're worried about a couple hundred million in sales like it's not sitting next to 100 billion dollar loan.
Like bro, come on man...
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Every picture I see of him he's wearing that leather jacket - tell me a CEOs role isn't entirely performative.
That's a tech CEO thing - Jobs' turtlenecks, Gates' blue oxford shirts, etc. You wouldn't think twice about a Wall Street guy in a suit, but that's just a daily uniform.
Yep, they love it.
They also all love saying they could have (or would have) been a physicist.
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Pretty sure Elon's completely given that game away.
Elon just dresses like the pig he is.
To be fair, I've seen him in another stupider leather jacket that was reptile textured.
They obviously don't pay him enough and that's why he only has the one outfit.
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Its not a bubble. A bubble is when you sink billions into something with no payoff. We've sunk trillions. Any people aren't just uninterested, a substantial amount are actively opposed to it. Its not the same thing at all.
Maybe you'd call that a black hole instead of bubble
Nexus of causality?
*torment
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I haven't read the article. I'm not going to read the article because I, quite frankly, don't care about these people and I hope they all fucking crash and burn. But I'm going to take a guess and say that their attitude is something on the order of "We're making tons of money how can they possibly be the bubble?"
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Of course they deny that AI is a bubble. Like real estate speculants deny the housing market being a bubble. It simply would be an admission of failure.
Every conman insists his bullshit is real. Honest!
Trust me bro. Just one more AI, I swear.
Bubble inflators say there's no bubble, ask for more pumps for no reason.
Tulip vendors saying mania is fake news!
No shit. Their stocks would crater if they did tell the truth.
I'd rather forgo all of my technology and live like a caveman than use and embrace AI the way these morons want.
Even if you wanted to you can't use AI the way these guys want, because it doesn't work.
The more I learned about packet tracking and air gapped attacks makes me want to just uncle Ted the fuck out, minus the violence.
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These fucking nerds - Hey, Dipshit! Jedi mind tricks are not real! Your hand-waving "These are not the AI Tech Bubbles you seek," won't work.
Is davos a gathering of villains hell-bent on making the world a worse place?
The "damage control" they're doing clearly isn't working that well, eh?
"If i deny its existance long enought, it will stop existing!'
Current AI is a dead end, it's less intelligent than a fly brain, which by the way can solve mazes with just 160,000 neurons, remember where the food is after hours of discovering such, is self replicating, and is a generic intelegect.
“Not a bubble” isn’t for us it’s for investors that are starting to wake up. He’s just trying to keep them asleep
There is no war in Ba Sing Se
Filthy rich liars that got filthy rich by lying and stealing are once again lying to protect their disgusting wealth. Who could‘ve seen this coming?
Like when the coach of a big sports team is interviewed on the half-time break of a game they're losing, this guy will of course going to say they're still going to win.
It would only be news if he confessed they were fucked.
What they say about it means nothing. Why would they say anything else?
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