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rozap 6 hours ago

Realistically I think there are two outcomes:

AGI succeeds and there are mass layoffs, money is concentrated further in the hands of those who own compute.

OR

AI bubble pops and there are mass layoffs, with bailouts going to the largest players to prevent a larger collapse, which drives inflation and further marginalizes asset-less people.

I honestly don't see a third option unless there is government intervention, which seems extremely far fetched given it's owned by the group of people who would benefit from either scenario presented above.

throwacct 6 hours ago | parent | next [-]

Third option: no bailouts of any type. Don't socialize losses. The board resets itself again, and let entrepreneurs, small businesses flourish again.

JoshTriplett 3 hours ago | parent | prev | next [-]

> with bailouts going to the largest players

> I honestly don't see a third option unless there is government intervention

Bailouts are government intervention. The third option is an absence of government intervention, at least at the business level. By all means intervene in the form of support for impacted individuals, e.g. making sure people have food on the table. Stop intervening to save businesses that fail.

johnnyanmac 2 hours ago | parent | prev | next [-]

It's slim but the 3rd option is the administration falling apart Nixon-style. Be it by death, conviction, or resignation.

The slimmer part is any potential successors suddenly responding to the people, but maybe that happens in congress in 2027. Still up in the air.

goalieca 6 hours ago | parent | prev | next [-]

Bailouts for chip fabicration and nothing else.

jimbokun 6 hours ago | parent | prev | next [-]

If the AI bubble pops it's just another bubble like the many ones that have occurred throughout history and the market eventually recovers.

In the AGI Succeeds scenario, the situation is unprecedented and it's not clear how it ever gets better.

throwacct 6 hours ago | parent [-]

Tbh, the answer is simple: if we truly get AGI, the government would nationalize it because it's a matter of national security and prosperity for that matter. Everything will change forever. Agriculture, Transportation, Health... Breakthrough after breakthrough after breakthrough. The country would hold the actual key to solve almost any problem.

apsurd 5 hours ago | parent | next [-]

when you write it out like that, it sounds unfathomably… silly.

I'm not a tinfoil hat skeptic, and i'd like to think i can accept the rationale behind the possibility. But I don't think we're remotely close as people seem to think.

gizajob 5 hours ago | parent | prev | next [-]

The government only nationalises losses, not wins.

gizajob 5 hours ago | parent | prev | next [-]

The key to typing out the solution to any problem, not actually solving it.

jimbokun 5 hours ago | parent | prev [-]

Looking at the current state of politics around the world...you really think that would be the outcome?

throwacct 5 hours ago | parent [-]

AGI? Absolutely. If your country gets there, would anyone relinquish that type of power and knowledge?

lemoncookiechip 3 hours ago | parent | prev [-]

Does the USA even have enough money to rescue the tech giants at this point? We could be talking multiple trillion dollars at worst. And the AI only companies like OpenAI and Anthropic would be the most vulnerable in comparison to say Google or Microsoft, because they have no fallback and no sustainability without investor money.

And Nvidia would be left in a weird place where the vast majority of their profits are coming from AI cards and demand would potentially dry up entirely.

Libidinalecon 2 hours ago | parent | next [-]

That is a huge problem.

We were not pushing 40 trillion in debt at the time of the great financial crisis.

The TARP was a max of 700 billion and we didn't even disburse all the funds.

Trying to do a bailout of this size could easily cause a crisis in the treasury market. Then we really are in huge trouble.

zeroonetwothree 2 hours ago | parent | prev [-]

All these companies don’t have piles of debt. So why would they need a bailout at all?