We’ve basically got to wait for Anthropic and OpenAI to actually IPO before any of this can get started properly. Once there’s a public expectation for profit from the two biggest AI labs, then the market will start acting against them. We can hope, at least.

The funniest part is that the thing that could actually make AI useful at scale might be what wrecks the investment thesis: cheap, local, open weight models. Wall Street funded a trillion dollar server farm to discover that sometimes the answer is a smaller model running on your laptop. The technology might win while the investors lose. Nevertheless, companies such as Google, Amazon, and Microsoft – as well as Nvidia and AMD – are a very long way from simply going under.

As a financial analyst, Klement’s take on the AI economy has been notably grim — back in May, he penned an article in Reuters arguing that institutional investors shouldn’t be asking “whether the AI boom will end, but what will happen to markets when it does.” Now, his live interview on Bloomberg‘s flagship news channel underscores the degree to which the AI bubble is becoming impossible for mainstream commentators to ignore […]

What’s interesting to me is that people who run Bloomberg have a huge advantage in manipulating the market.

In fact, the story behind the AI boom really has to be how the business press operates, always enabling the upper class to be richer.

Of course, if the Iraq war is any example, there will be a few confessions and nothing will change.

investing in the wrong future

I’m assuming they mean “future” in the same way the stock market (ab)uses the word, because AI had its lower ribs removed on day one. There’s no future there.