A few thoughts on the AI bubble:
1. The "no business model" critique is wrong for FAANG; they’re posting record profits while spending billions. It’s startups like OpenAI and Thinking Machines that can’t justify their valuations.
2. Circular deals (Nvidia funding OpenAI to buy Nvidia chips) are a major 🚩. It feels similar to the Lucent & Enron collapses.
3. The internet took a decade post-crash to change everything. AI will likely take just as long, but investors are betting on 2–4 years.
@carnage4life 1. OpenAI et al also have a huge revenues that they can capture if/when the need comes.
2 is a nothingsburger. Enron was just a scumbag company. If you position Lucent as Nvidia then... see point 1. There is already too much cash on their hands, what are they supposed to do with it, buy bonds?
3. we'll see 🤷♀️ Don't bet with what you can't afford to lose.
