The AI Bubble is being driven by the fantasy that AI can replace human labour cost effectively. It can’t. The cost of compute is too high. Semiconductors are too expensive. GPU’s, CPU’s, even a commodity like NAND flash memory. Power is too expensive. Water is too scarce. Key metals are too expensive. It’s cheaper for humans to do the work than burning tokens using Claude Code or OpenAI Codex. The layoffs were premature. Humans are cheaper than compute.
BREAKING: Ray Dalio just said the AI market is a bubble and it will burst.
"All great technology changes produce bubbles," Dalio told Bloomberg. "The pricking is the converting of wealth into money" right now, every major tech company is pouring hundreds of billions into AI infrastructure and booking it as investment.
The moment investors demand actual returns, companies will have to show that the money spent is generating real profits from real customers. If the revenue is not there, valuations collapse and right now, the revenue is not there.
AI companies are spending $800 billion in capital expenditure this year alone. OpenAI spends $60 billion annually on cloud infrastructure against $25 billion in actual revenue.
Less than 1% of executives globally report meaningful ROI from their AI investments. 95% of enterprise AI pilots have failed to deliver measurable returns according to MIT.
The entire $2 trillion cloud backlog held by Microsoft, Oracle, Google, and Amazon is anchored by two unprofitable companies: OpenAI and Anthropic.
By 2030, the industry needs $2 trillion in annual revenue to justify what is being built today. Bain estimates it will fall $800 billion short.
Dalio is not saying the technology is fake. He is saying the economics do not work yet and every bubble in history has ended the same way when that moment of reckoning arrived.
@EconomyComments@Govindtwtt oh yeah, it only cost 1,5 TRILLION DOLLARS to get here.
fking idiot.
"ai"
why don't you just retire yourself and let "ai" replace you.
@PaulPallaghy@Govindtwtt Google said that they were launching voice bots 2 years ago.
Keep drinking the cool aid.
Oh and btw, voice bot already exists you fking idiot.
Funny how you guys know nothing about this area until big tech “AI” came.
@EliteStatusFlyr@MurrayHillGuy1 No she won’t.
You obviously have 0 experience with women.
You can easily tell when a women has 100+ bodies, they act like men.
In combo with being 30+? Even worse.