Today, no amount of model training is too much. No price for that training is too high. The builders bet is that inference will be orders of magnitude cheaper in 5 years. Build for that. Be Netflix or YouTube, not Qwest.
This year, American tech companies will spend $300 billion to $400 billion on artificial intelligence, which is in nominal dollars more than any group of companies have ever spent to do anything. Notably, these companies are not remotely close to earning $400 billion on artificial intelligence.
That’s why you’re starting to hear some people wonder whether the AI build-out is turning into the mother of all economic bubbles.
The prospect of an AI bubble should scare us. Roughly half of last quarter’s GDP growth came from infrastructure spending on AI, and more than half of stock market appreciation in the last few years has come from companies associated with AI. If the AI spending project blows up in the next few years, as our next guest says it might, the implications for technology, the economy, and politics would be immense.
– This Is How the AI Bubble Could Burst – Plain English with Derek Thompson