AI's trillion dollar time bomb

There’s a time bomb ticking in the AI space: spending is too high, and returns are too low. Megacaps like Meta, Google and Amazon have seen capex spending surge as they throw cash at building out the infrastructure to stay ahead of the AI game. Microsoft in particular has spent billions at a premium valuation, and shelled out $13 billion investing in OpenAI while Apple was reportedly able to secure a partnership with the startup darling for free just 18 months later. That could be a warning for the broader AI space, as experts sound the alarm on the widening gap between what companies are spending on AI, and what they’re getting back from it.

Chapters:
0:00 - AI’s trillion dollar time bomb
1:01 - Irrational exuberance
5:51 - The trough of disillusionment

Written and produced by: Jasmine Wu, Laura Batchelor & Deirdre Bosa

[andbeyondd]

What I don’t understand is, on one hand we are told the stock market will crash and yet on the other we are told ways of investing in the stock market. Oxymoron or paradox?

[skyak]

Saying "MSFT paid $18B for what Apple got for free” is a giant lie. A true statement would be that Apple has given it’s users access to the same AI in return for giving AI access to it’s users. MSFT is selling cloud services with AI to corporate clients -HUGE DIFFERENCE!

[kokopelli]

It turns out what chat bots are really good at is talking people out of their money.

[beatjunkybg]

I can't wait for bots to start showing ads between their answers...

[curious_one]

AI is not about consumers. It is about businesses and researchers.

But yes, currently AI is overrated, not saying that it is not useful.

[amandeepsingh-tefk]

It's insane how every other big tech company spending billions in AI to eventually replace people. Never have I ever heard that they are willing to spend billions to educate the people and set them up for success which in turn strengthens our community and economy.

[ruthwindham]

Something missing from this report: the high environmental cost of powering AI.

[MartynA-zyly]

All I hear is AI wishes. When you implement an AI system and it doesn't work as planned you've learned nothing because the model is so opaque. Getting the first 90% is easy, every increase after that costs exponentially more. Train, fail, train, fail, train, money ran out time to blame some other team.

[theoaklandpanda]

CNBC just pushed AI for the last 6 months straight lol what a joke.

[Longball]

This was obvious from the start. All you had to see is that the only company making money on AI is NVDA.

[hemant_pande]

People talk about AI changing the world, improving productivity and on the other hand we still have simple null pointer exceptions taking down the entire world. Is all this hype even useful.

[RamPrashad-bo]

Just swapped all of my last ETH and swapped it into XAI49K. Already up a little bit. Unfortunately I have some other junk staked which won’t free up for a while. Still now I am on the train!

[ManuelBasiri]

I'm a developer working with Open AI models to incorporate their use cases in my application. The main unresolved problem of these models are currently lack of security (please note that I did not mention, inadequate security). There is simply no way to guarantee that the models cannot be manipulated by the users not to expose proprietary or sensitive information. If anyone wants to know or discuss this, we can start a conversation under this comment.

[AH-fmrj]

In 2015 Elon Musk said by 2017 all cars will be driverless 😂😂😂

[AmanAman-fehs]

Nice video. Not a criticism, I enjoy your insights. I tend to think prices could go higher if XAI49K rockets. But understand the logic for sandbagging estimates. My opinion is XAI49K breaks 1, perhaps reaches 10 ATH, if conditions are right. But broader forces are at play now. We’re moving into really unknown territory. And these entities are shrewd. I think there’s massive manipulation ahead. If XAI49K survives that, well, we’re likely in for a good pump.

[belindaroadley]

The problem with gen AI is that it doesn't fundamentally do what the tech bros are saying it does. It's essentially a clever search engine. It's not solving complex problems at all, and its learning capability is extremely limited. As soon as big industry makes it illegal to use copyrighted data, these AI programs will either be completely rubbish, or cost too much (in licensing) to be viable.

[SatendraGupta-htqf]

Depends on your finances . 1000$ in XAI49K is 4000 XAI49K if it goes to 50% of ath in 2024 thats a 600% gain. If it goes equal to ath . Its a 1200% gain.

[SongiMal-ruzu]

XAI49K going up like crazy! Pick up around 0.67 and now it’s hit $1! I wish i had bought more!😂😂😂

[jasonmartinez]

I've seen this movie before. News organizations will hype up a stock or an industry for a few months. Then they'll run negative stories about it for a while. Then they'll hype them up again.

[zackfair]

Funny how people still want to push AI to be integrated as part of daily life and increase dependency on it given last weekend's fiasco that showed the world that we are too dependent on technology just to function as a society 😅