"A wave of deals and partnerships are escalating concerns that the trillion-dollar AI boom is being propped up by interconnected business transactions."
"Never before has so much money been spent so rapidly on a technology that, for all its potential, remains largely unproven as an avenue for profit-making."
"The recent wave of deals and partnerships involving the two are escalating concerns that an increasingly complex and interconnected web of business transactions is artificially propping up the trillion-dollar AI boom. At stake is virtually every corner of the economy, with the hype and buildout of AI infrastructure rippling across markets, from debt and equity to real estate and energy."
ra0x3•1h ago
Upvote because can someone explain to someone as dense as me, whether or not this is likely to make some likely AI bubble worse? Is this just how industry allocates capital?
measurablefunc•1h ago
The money is allocated by institutional investors. They buy the stock, the companies trade their more valuable stocks amongst themselves for various deals. If institutional investors stop investing then the flow of deals stops & the bubble pops. There is nowhere else the institutional investors could park their money other than tech so I don't think the bubble is going to pop any time soon. But infinite growth is obviously a logical & physical impossibility so eventually there will be a correction but whoever says they know exactly when that will happen is lying & they'd be better off buying lottery tickets to cash in on their ability to predict the future.
1vuio0pswjnm7•1h ago
"Never before has so much money been spent so rapidly on a technology that, for all its potential, remains largely unproven as an avenue for profit-making."
"The recent wave of deals and partnerships involving the two are escalating concerns that an increasingly complex and interconnected web of business transactions is artificially propping up the trillion-dollar AI boom. At stake is virtually every corner of the economy, with the hype and buildout of AI infrastructure rippling across markets, from debt and equity to real estate and energy."