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The OpenAI bubble


Maybe another slice of the next Too Big To Fail crisis, c/o the NYT... the OpenAI bubble.

https://archive.ph/Ucewh

Comments

  • All these companies that used to be light on hard assets are going to be sitting on a lot of stuff sitting on a lot of ground.

    Stay tuned.
  • Sing it with me..........."The wheels on the bus go round and round. Round and round. Round and round".........
  • edited October 31
    Something sounds paradoxical about an “open” bubble?
    Mark said:

    Sing it with me..........."The wheels on the bus go round and round. Round and round. Round and round".........

    Another record high today. No end in sight to the wealth being generated.

    (Now, back to reading Sorkin’s 1929)

  • "(Now, back to reading Sorkin’s 1929)"  :)
  • Not trying to hijack the OP. This article pointed out the outstanding challenges of AI.
    https://msn.com/en-us/technology/artificial-intelligence/here-s-how-the-ai-crash-happens/ar-AA1PwDmn
  • @Sven- thanks for that. An excellent overview of the AI technological masterwork / world-class financial bubble.
  • Another record high today. No end in sight to the wealth being generated.
    That was yesterday, but today the market woke up. Easy comes, easy goes and that is why it is called a bubble. Many events are happening now that could potentially be the beginning of things to unravel.

    Always admire of how Buffet is able to stay calm even with over $300 billions in cash, and not buying back BRKB.
  • If the Dotcom or Telecom bubbles are any lesson, FOMO can produce bubble formation. The lesson may be to continually take profits and not get caught all-in when the bubble bursts. IMO, this is shaping up to be very lucrative and might be a bubble that dwarfs all others. Given the amount of spending already underway, and planned, it could run for quite a long time. And will likely spread to many areas, maybe some entirely unexpected.

    Maybe we should be brainstorming potential opportunities, driven by AI, that have not already been fully realized? Perhaps we should ask AI? LOL
  • Speaking of the AI Bubble... when companies start musing openly about creating ways to 'backstop' or 'guarantee' their investments, you know it's a bubble.

    https://www.cnbc.com/2025/11/06/trump-ai-sacks-federal-bailout-openai-friar.html
  • Barron's spoke with Sonu Kalra, manager of the Fidelity Blue Chip Growth fund.
    Much of the discussion focused on AI and technology.

    https://www.msn.com/en-us/money/technology/nvidia-meta-alphabet-and-sharkninja-this-manager-thinks-all-four-are-winners/ar-AA1PTTbf
  • edited 1:23PM
    @Observant1. That is a very interesting read, and it is what I believe is likely. That the hype will be overblown in many investors minds, there will be corrections, maybe a few really big ones. But overall, this could be a sea change. Most of us watched precisely that happen, in 2000, and the following decades.

    Imagine if here are big breakthroughs in quantum computing, along the way.

    "In the late 1990s and early 2000s, dot-com-related stocks went through a correction and digestion phase. But in the next 20 years, the internet became embedded in everything we do, creating value over time. That is the road map I’m using to think about generative AI.

    I am a believer in [futurist Roy] Amara’s Law: We tend to overestimate the impact of technologies in the short term but underestimate them in the long term. I use Netscape, the internet-browser company, as an example. It went public in 1995 and brought the internet to the masses—similar to ChatGPT. That was the starting line [of the internet cycle]."
  • @Observant1 - thanks for linking up the Kalra interview.
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