Gary
Hi, Carole, there's no question that generative AI is a bubble. The technology will continue to exist large language models, but it's going to become a commodity that nobody's going to pay very much money for, and it costs a lot to create. People are spending a huge amount of money, trillions of dollars, on infrastructure.

Revenue is never going to be anything like that. So what's going to crash is the valuations of the companies doing this. We're going to wind up with too much infrastructure. Chips are going to depreciate. Investors are going to lose a lot of money. Banks that have put up money are going to lose money. So we're going to see some kind of crash.

We don't know how bad that crash is going to be, because we don't know who was in into this and how much, but it's not going to be pretty. And the real question is, when is it going to happen?

I keep thinking of Wiley Coyote at the edge of a cliff in the roadrunner cartoons, and he doesn't fall until he looks down. The question is, When are people going to look down? The finances don't make any sense, and I think they're starting to look down. So it could be relatively soon, but also the market can remain irrational longer than you can remain solvent, and so it's a little bit hard to know exactly when, but the finances just don't make sense. I should add one more thing. They don't make sense because the product itself is not reliable. No.
How accurate was this transcription?

0:001:14



1x



AI Chat
Outline
Comments