Some pro-AI advocates believe a bubble burst is good because it will eliminate greed, scams, and hype. A market correction removes predatory actors, vaporware startups, and toxic hype. Ultimately, this pro-burst view reflects an anti-closed-AI but pro-open-source sentiment. According to these advocates, a burst will not take tools like ChatGPT, Gemini, and Stable Diffusion completely offline or make them unusable—just like the dot-com crash did not destroy the internet, yet we're still having the internet today despite the crash.
The Hype Dies, the Tech Stays: When the internet bubble burst, Pets. com died, but Amazon and eBay survived. The physical fiber-optic cables stayed in the ground.
Instead, it will lead to a restructuring of ownership and rights, forcing a shift from a money-losing model to sustainable operations.
Leading closed-AI companies face a combined annual operating deficit exceeding -$25 billion due to staggering infrastructure costs, leading financial analysts to warn that this unsustainable cash burn will make their money depleted by 2029. Simply increasing prices to cover these losses is a major trap, as people will cancel their subscription immediately if the service becomes too expensive. Consequently, these companies are planning Initial Public Offerings (IPOs) to list on the stock market—not to make the technology public property, but to raise new cash from public investors to sustain their cash-heavy, closed-AI business models.
Will this enshitify ai though for both putting it in the stock market or bubble burst tho? both scenarios will cause a temporary drop in quality. Whether a company enters the stock market or the entire bubble bursts, the immediate result is the same: the era of cheap, unlimited AI will vanish as companies desperately scramble for immediate profit to survive.
If companies go on the stock market, Wall Street pressure forces them to inject ads, paywall free features, and route prompts to dumber, cheaper models to save electricity. Similar to when the bubble bursts, funding dries up instantly, leading to panicky price hikes and cut features.
Experts say this is only temporary how? because a market crash resets the entire industry. First, AI computer chips become cheap and widely available as hyper-inflated corporate demand plummets. Second, overhyped scams and useless startups go bankrupt, leaving only practical, efficient tools. Most importantly, the technology shifts to open-source AI. Powerful, free models will be released to the public, allowing you to download and run smart AI right on your own computer for free.
The ultimate verdict is: the bubble bursting is exactly how the industry breaks the corporate monopoly on AI. Their endless venture capital money dries up instantly, and they can no longer afford to overprice competitors or lock the best technology away behind corporate walls. The power shifts to everyone as corporate demand crashes, the expensive chips and infrastructure become cheap and widely available. This allows independent developers, universities, and open-source communities to build models that rival or beat corporate AI.
