Alive-in-2025 a day ago

Yes. All these companies making "investments" in each other, where company A puts 10 billion into company B and company B buys 10 billion of company A's products can't work out well in the end. This is separate from the concept that AI has real value. Pointing out the likely doomed to fail huge mutual investments is a separate issue. We can have two ideas in mind about something.

I am worried about the damage when this ends. Sure, there's way over exuberance in my opinion about the value of all this vast amount of spending and infrastructure (datacenters, billions or trillions more in training hardware from nvidia etc). But there's this other completely bonkers level where it's just normal to give some billions for some stock and they turn around buy billions of your stuff.

This has to run into reality at some point.

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dripdry45 a day ago | parent [-]

Does it, though? Tesla stock hasn’t run into reality yet. All that’s required to avoid reality is for enough people to keep believing believing the lie. If a bunch of big companies all invest in each other and never sell, then wouldn’t it prop up the whole thing and the valuation stays high? I’m open to ideas

	▲	dragontamer 12 hours ago \| parent \| next [-]
		The Keely Engine continued to get investors until Keely died. Sometimes, a conman outruns the con. They just die of old age before it falls apart. It's the 1880s all over again. Conmen can outrun the press and overall information space. Back then you took investor dollars and shoved them into wagons that traversed the West selling stock. Today, you can accomplish the same with a few Facebook campaigns.
	▲	jiggawatts a day ago \| parent \| prev [-]
		Valuations are not value. There’s a point where if you ask to be paid a billion dollars for something that is worthless, people just laugh at you. Until the next transaction you can keep pretending the old inflated valuation is real, but you can raise capital, not without popping the bubble. At some point people will stop giving Tesla and NVIDIA more money.