As someone who works with integrating AI- it’s failing badly.
At best, it’s good for transcription- at least until it hallucinates and adds things to your medical record that don’t exist. Which it does and when the providers don’t check for errors - which few do regularly- congrats- you now have a medical record of whatever it hallucinated today.
And they are no better than answering machines for customer service. Sure, they can answer basic questions, but so can the automated phone systems.
They can’t consistently do anything more complex without making errors- and most people are frankly too dumb or lazy to properly verify outputs. And that’s why this bubble is so huge.
It is going to pop, messily.
And they are no better than answering machines for customer service. Sure, they can answer basic questions, but so can the automated phone systems.
This is what drives nuts the most about it. We had so many incredibly efficient, purpose-built tools using the same technologies (machine learning and neural networks) and we threw them away in favor of wildly inefficient, general-purpose LLMs that can’t do a single thing right. All because of marketing hype convincing billionaires they won’t need to pay people anymore.
I tried having it identify an unknown integrated circuit. It hallucinated a chip. It kept giving me non-existent datasheets and 404 links to digikey/mouser/etc.
As someone who is actually an AI tool developer (I just use existing models) - it’s absolutely NOT failing.
Lemmy is ironically incredibly tech illiterate.
It can be working and good and still be a bubble - you know that right? A lot of AI is overvalued but to say it’s “failing badly” is absurd and really helps absolutely no one.
insurance companies, oh no, insurance companies !!! AArrrggghhh !!!
If you want to define “failing” as unable to do everything correctly, then sure, I’d concur.
However, if you want to define “failing” as replacing people in their jobs, I’d disagree. It’s doing that, even though it’s not meeting the criteria to pass the first test.
SSSSIIIIIIIGGGGGGHHHHHHHHHHH…
Looks like I’ll have to prepare for yet another once-in-a-lifetime economic collapse.
How many does this make now, 6? 7? I lost track after Covid broke my understanding of time and space.
Covid really fucked everything up. My sense of time and recent-ish history went to shit.
If I was China, I would be thrilled to hear that the west are building data centres for LLMs, sucking power from the grid, and using all their attention and money on AI, rather than building better universities and industry. Just sit back and enjoy, while I can get ahead in these areas.
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I feel like literally everybody knew it was a bubble when it started expanding and everyone just kept pumping into it.
How many tech bubbles do we have to go through before we leave our lesson?
what lesson? it’s a ponzi scheme and whoever is the last holding the bag is the only one losing.
Plus everyone else that pays taxes as they will have to continue to pay for unemployment insurance, food stamps, rent assistance, etc (not the CEOs and execs that caused it that’s for sure).
And that’s why it’s being done. Everyone hopes that they make it out at just the right time to make millions while the greater fools who join too late are left holding the bag.
Bubbles are great. For those who make it out in time. They suck fo everyone else including the taxpayer who might have to bail out companies and investors.
Always following the doctrine of privatizing profits and socializing losses.
I get that people who sell AI-services wants to promote it. That part is obvious.
What I don’t get is how gullible the rest of society at large is. Take the norwegian digitalization minister, who says that 80% of the public sector shall use AI. Whatever that means.
Or building a gigantic fuckoff openai data centre, instead of new industry https://openai.com/nb-NO/index/introducing-stargate-norway/
Jared Diamond had a great take on this in “Collapse”. That there a countless examples of societies making awful decisions - because the decisionmakers are insulated from the consequences. On the contrary, they get short term gains.
Everyone knows a bubble is a firm foundation to build upon. Now that Trump is back in office and all our American factories are busy cranking out domestic products I can finally be excited about the future again!
I predict that in a year this bubble will be at least twice as big!
I didn’t have the US becoming a banana republic on my bingo card tbf
why not
Yeah ten years seems like plenty of notice
Willing to take real life money bet that bubble is not going to pop despite Lemmy’s obsession here. The value is absolutely inflated but it’s definitely real value and LLMs are not going to disappear unless we create a better AI technology.
In general we’re way past the point of tech bubbles popping. Software markets move incredibly fast and are incredibly resilient to this. There literally hasn’t been a software bubble popping since dotcom boom. Prove me wrong.
Even if you see problems with LLMs and AI in general this hopeful doomerism is really not helping anyone. Now instead of spending effort on improving things people are these angry, passive, delusional accelerationists without any self awareness.
I mean we haven’t figured out how to make AI profitable yet, and though it’s a cool technology with real world use cases, nobody has proven yet that the juice is worth the squeeze. There’s an unimaginable amount of money tied up in a technology on the hope that one day they find a way to make it profitable and though AI as a technology “improves”, its journey towards providing more value than it costs to run is not.
If I roleplayed as somebody who desperately wanted AI to succeed, my first question would be “What is the plan to have AI make money?” And so far nobody, not even the technology’s biggest sycophants have an answer.
The profit of ai lies in this: mass surveillance and ads. Thats it.
The revenue of AI lies in mass surveillance and ads. But even going full dystopia, that has not been enough to make AI companies profitable.
Millennials are killing the mass surveillance and advertising industry!
AI is absolutely profitable just not for everybody.
AI as a technology is so far not profitable for anybody. The hardware AI runs on is profitable, as might be some start ups that are heavily leveraging AI, but actually operating AI is so far not profitable, and because increasingly smaller improvements in AI use exponentially more power, there’s no real path that is visible to any of us today that suggests anyone’s yet found a path to profitability. Aside from some kind of miracle out of left field that no one today has even conceived, the long term outlook isn’t great.
If AI as a technology busts, so does the insane profits behind the hardware it runs on. And without that left field technological breakthrough, the only option to pursue to avoid AI going completely bust is to raise prices astronomically, which would bust any companies currently dependent on all the AI currently being provided to them for basically next to nothing.
The entire industry is operating at a loss, but is being propped up by the currently abstract idea that AI will some day make money. This isn’t the “AI Hater” viewpoint, it’s just the spot AI is currently in. If you think AI is here to stay, you’re placing a bet on a promise that nobody as of today can actually make.
Absolute delusion right here
Delusion? Ok let’s get it straight from the horse’s mouth then. I’ve asked ChatGPT if OpenAI is profitable, and to explain its financial outlook. What you see below, emphasis and emojis, are generated by ChatGPT:
—ChatGPT—
OpenAI is not currently profitable. Despite its rapid growth, the company continues to operate at a substantial loss.
📊 Financial Snapshot
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Annual recurring revenue (ARR) was reported at approximately $12 billion as of July 2025, implying around $1 billion per month in revenue.
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Projected total revenue for 2025 is $12.7 billion, up from roughly $3.7 billion in 2024.
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However, OpenAI’s cash burn has increased, with projected operational losses around $8 billion in 2025 alone
—end ChatGPT—
The most favorable projections are that OpenAI will not be cash positive (That means making a single dollar in profit) until it reached 129 billion dollars in revenue. That means that OPENAI has to make more than 10X their annual revenue to finally be profitable. And their current strategy to make more money is to expand their infrastructure to take on more customers and run more powerful systems. The problem is, the models require substantially more power to make moderate gains in accurate and capability. And every new AI datacenter means more land cost, engineers, water, and electricity. Compounding the issue is that the more electricity they use, the more it costs. NJ has paved the way for a number of new huge AI datacenters in the past few years and the cost of electricity in the state has skyrocketed. People are seeing their monthly electric bills raised by 50-150% in the last couple months alone. Thats forcing not only people out of their homes, but eats substantially into revenue growth for data centers. It’s quite literally a race for AI companies to reach profitability before hitting the natural limits to the resources they require to expand. And I haven’t heard a peep about how they expect to do so.
You use one company thats is spearheading the entire industry as your example that no AI company is profitable. Either you are argueing in extremely bad faith or you’re invredibly stupid I’m sorry.
Of course I used the company that is the market leader in AI as an example that AI companies are not profitable you donut, that’s how that works.
They’re not the only AI company that’s not profitable, like I said none of them are. You can take your pick if you don’t like OpenAI as an example.
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Who is it profitable for right now? The only ones I see are the ones selling shovels in a gold rush, like Nvidia.
Every AI software company? So much ignorance in this thread its almost impossible to respond to. Llm queries are super cheap already and very much profitable.
there’s an argument that this is just the targeted ads bubble that keeps inflating using different technologies. That’s where the money is coming from. It’s a game of smoke and mirrors, but this time it seems like they are betting big on a single technology for a longer time, which is different from what we have seen in the past 10 years.
The value a thing creates is only part of whether the investment into it is worth it.
It’s entirely possible that all of the money that is going into the AI bubble will create value that will ultimately benefit someone else, and that those who initially invested in it will have nothing to show for it.
In the late 90’s, U.S. regulatory reform around telecom prepared everyone for an explosion of investment in hard infrastructure assets around telecommunications: cell phones were starting to become a thing, consumer internet held a ton of promise. So telecom companies started digging trenches and laying fiber, at enormous expense to themselves. Most ended up in bankruptcy, and the actual assets eventually became owned by those who later bought those assets for pennies on the dollar, in bankruptcy auctions.
Some companies owned fiber routes that they didn’t even bother using, and in the early 2000’s there was a shitload of dark fiber scattered throughout the United States. Eventually the bandwidth needs of near universal broadband gave that old fiber some use. But the companies that built it had already collapsed.
If today’s AI companies can’t actually turn a profit, they’re going to be forced to sell off their expensive data at some point. Maybe someone else can make money with it. But the life cycle of this tech is much shorter than the telecom infrastructure I was describing earlier, so a stale LLM might very well become worthless within years. Or it’s only a stepping stone towards a distilled model that costs a fraction to run.
So as an investment case, I’m not seeing a compelling case for investing in AI today. Even if you agree that it will provide value, it doesn’t make sense to invest $10 to get $1 of value.
LLMs can absolutely disappear as a mass market technology. They will always exist in some sense as long as there are computers to run them and people who care to try, but the way our economy has incorporated them is completely unsustainable. No business model has emerged that can support them, and at this point, I’m willing to say that there is no such business model without orders of magnitude gains in efficiency that may not ever happen with LLMs.
Proof: Agentic AI is worthless.
Dotcom was a bubble too and it popped hard with huge faillout even though the internet didn’t disappear and it still was and is a revolutionary thing that changed how we live our lives.
Overvalued doesn’t mean the thing has no value.
Sort of agreed. I disagree with the people around here acting like AI will crash and burn, never to be seen again. It’s here to stay.
I do think this is a bubble and will pop hard. Too many players in the game, most are going to lose, but the survivors will be rich and powerful beyond imagining.
So is it smart to short on the ai bubble ? 👉👈
The market can remain irrational longer than you can remain solvent.
Yup. If you have money you can AFFORD TO BURN, go ahead and short to your heart’s content. Otherwise, stay clear and hedge your bets.
The question is when, not if. But it’s an expensive question to guess the “when” wrong. I believe the famous idiom is: the market can stay irrational longer than you can stay solvent.
Best of luck!
It’s going to be great when the AI hype bubble crashes
Open models are going to kick the stool out. Hopefully.
GLM 4.5 is already #2 on lm arena, above Grok and ChatGPT, and runnable on homelab rigs, yet just 32B active (which is mad). Extrapolate that a bit, and it’s just a race to the zero-cost bottom. None of this is sustainable.
Ooowee, they are setting up the US for a major bust aren’t they. I guess all the wealthy people will just have to buy up everything when it becomes dirt cheap. Sucks to have to own everything I guess.
Recognizing from history the possibilities of where this all might lead, the prospect of any serious economic downturn being met with a widespread push of mass automation—paired with a regime overwhelmingly friendly to the tech and business class, and executing a campaign of oppression and prosecution of precarious manual and skilled laborers—well, it should make us all sit up and pay attention.
Your kids will enjoy their new Zombie Twitter AI teacher with fabulous lesson plans like, “Was the Holocaust real or just a hoax?”
Not only the tech bubble is doing that.
It’s also the tech bubble ow and the pyramide scheme of the US housing sector will cause more financial issues as well and so is the whole creditcard system
propo dabogda
Did you think it was strange when tech bubble burst in 2001 ? And the housing market and San Jose, Tech capital of the world went up.
