Unfortunately, what will really happen is that they will receive a massive bailout from Main Street. Just like in 2008 for the banks.

The impact of AI hype failing at this point has become too big to fail in the eyes of "rugged" American capitalism.

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cowlevel 4 hours ago | parent [-]

It's clear that American capitalism and AI are now fully intertwined. Either they both collapse or they both succeed. This bubble is actually too big for the government to bail out and if it tries it'll probably just bring the American dollar down with it, like tying helium balloons to the Titanic.

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fhrjfjdjfn 2 hours ago | parent [-]

1.) The Fed is tightening because of hot and worsening inflation

2.) The bubble pop doesn't pose systemic risk to the US economy

3.) AI companies hardly employ any Americans (that's the entire point)

4.) There's already direct precedent for letting the tech bubble pop (dotcom)

5.) AI is politically toxic with voters

6.) The bubble has been widely known to the public for YEARS while AI companies consciously ignored the risks and warning signs

7.) No amount of bailouts will fix a business model that sells $100 bills for $1

8.) The bailout would cost $30T (two thirds of the current US debt)

9.) The US government is broke at these debt to GDP levels

10.) A bailout is wishful thinking from AI bagholders

	▲	trvz 2 hours ago \| parent [-]
		And yet, for anyone who believes we’re on the path to true AI these are all irrelevant.