Ever wondered why GAFA didn't do AI in-house?
Was it so they didn't carry the can for the investment bubble that paid for it?
quote: Mark Zuckerberg at Meta has figured they will build as much as they can now, and the AI will help target ads and help their core business enough that it'll be worth it,
It is hardly an act of genius to spend billions to continue doing what you have been doing for years.
GAFA have form here. People bought screens when they needed them, so they spent a bundle making 4K screens. People just bought screens when they needed them. Then they spent a bundle making 8K screens. People just carried on buying screens when they needed them. The market for screen fanboys was tiny. It was daft.
Hedging energy? If only the British government had hedged Sterling for the Brexit referendum! They would have made a bundle.
quote: is this entire quarter of earnings just an industry trying to pump air into this thing to stave off a collapse?
Yep. They will keep inflating, reducing their exposure, ensuring that the small print on their circular investments is solid. And then when the AI companies go down, they will buy up the IP in the firesale.
AI breaths money, eats RAM and poops lousy PR. Datasheds are not investments, they are subscriptions, paying for tech that has the lifespan of a hamster.
Sadly, the chatbots will survive, taking the easiest 5% of customer calls, remaining as an obstacle for most of us to get past when we need support. But that isn't what AI promised.
Politicians believed that AI would turn vape-addicted, skill-challenged youths into Master Chiefs to replace all those nasty foreigners they kicked out, and save the big hole they created in services and the economy. Not going to happen.
Most of GAFA will be fine. A bit less cash, but fine. But there will be losers, and a Lehman Brothers 2.0
What to do? Minimise your spending, retrench as much as you have to, ignore the shiny and the promises, and wait for the mania to pass.