| ▲ | jdm2212 2 days ago |
| What specifically is the bubble you're talking about? Like which asset is seeing a runaway increase in valuation detached from fundamental value? |
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| ▲ | cdrnsf 2 days ago | parent | next [-] |
| Their debt load and infrastructure costs compared to their relatively meager earnings and widespread public distrust is concerning, no? |
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| ▲ | jdm2212 2 days ago | parent [-] | | Who is "they"? NVIDIA? Google? Anthropic? | | |
| ▲ | cdrnsf 2 days ago | parent [-] | | OpenAI, Anthropic, Google selling equity for the first time since their IPO, all of the downstream consumers of the frontier labs. NVIDIA is perhaps the only one profiting from actually selling something. Who hits a liquidity event before the house of cards blows over? | | |
| ▲ | jdm2212 2 days ago | parent [-] | | The original claim was "Their debt load and infrastructure costs compared to their relatively meager earnings..." which is just obviously not applicable to Google and NVIDIA, which both crank out more than $100 billion per year in profits. They can literally take on almost a trillion dollars each in debt to finance data centers and still be in reasonably good financial shape. OpenAI and Anthropic are not very profitable (yet!), but rely mostly on equity financing, not debt. So no debt load issue there either. | | |
| ▲ | cdrnsf 2 days ago | parent [-] | | Oh, wonderful! OpenAI and Anthropic's structural inability to earn a return for there investors should be no problem. What is NVIDIA's outlook should their customers' funding run out? Or what's the long tail outlook on Google killing its search product? | | |
| ▲ | jdm2212 2 days ago | parent [-] | | Google search only dies if AI wins, in which case there's no shortage of demand for tokens. NVIDIA's revenue just doubled year-over-year; even if token demand cools off and they slow to say 25% growth, they'll be fine. OpenAI and Anthropic not making money would be sad for their shareholders, but that's sort of a different topic from whether the "debt load" you originally cited will be any kind of a systemic problem (it won't). | | |
| ▲ | cdrnsf 2 days ago | parent [-] | | Onward to robot god nirvana, the dead red rock in the sky and all that then. |
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| ▲ | tobinfekkes 2 days ago | parent | prev [-] |
| ... All of it? Does a bubble need to be confined to one vertical? It seems like The Bubble is just the sum of a bunch of other individual bubbles. |
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| ▲ | jdm2212 2 days ago | parent [-] | | A bubble is a debt-fueled run-up in asset prices driven by over-optimistic projections of future fundamental value. The housing bubble was people borrowing money (debt-fueled) to buy ever more expensive houses (rising asset prices) on the assumption home values would always keep going up (projection of future value). '90s tech bubble was similar. Where are you seeing that now? Which asset is over-valued? | | |
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