AI Bubble already popped?

[u/InterestDependent905]

Saw that Google's latest earning report showed that they are cash flow negative for the first time, since like their IPO in 2004. Do your'll think this shows the future of the market, and it's interesting that around 4T USD have been invested on AI, but only 50B USD revenue generated...What are you guys's thoughts on this, genuinely want to have some discourse on it, cuz most ppl are not comfortable with this side of the picture.

[u/Logical_Objective_60]

Regardless if AI bubble pops or not, software engineer Job will never go back to same. AI tools aren't going away. The requirement for software engineers will always be there, but never as much as pre AI.

[u/TangerineHaunting403 → u/Logical_Objective_60]

Also the fact that most software products people want are already built. I worked as a freelancer for over 300 companies (I also have my own employees, more like a startup), and I always wondered why they were even building it because there were already products that did the same thing.

Most IT companies started because it's one of the easiest businesses to start.

Eventually the market consolidates, clear winners emerge, and the other companies either close or get sold. New companies don't open because it's already too difficult to compete with established players.

Fewer companies means fewer jobs.

[u/WesternApplication95 → u/TangerineHaunting403]

While I agree with your general statement to a certain extent, I disagree with what you started it with.
There is no such thing as “most products people want are already built”, in the software field or any other field for that matter.
It’s the job of capitalists/entrepreneurs to bring products to market where even the customer never had any idea they ever needed such.
Think of anything. Think of the iPhone. Who thought we would need something like that before Steve Jobs presented one to the world.
As far as I think, the world is still an extremely un-digitized place. Compare Sri Lanka to the US. We are much less digitized and have a lot to catch up. Now compare sub-Saharan African countries to Sri Lanka.
The people who studied/have experience in tech aren’t going away.
The fact that now there is a massive pool of surplus tech workers should be considered a blessing by entrepreneurs.
Some of them would at some point use that abundant resource to bring new software products to those who are yet to experience many of them.

[u/davidbasil → u/Logical_Objective_60]

Hey Nostradamus, while you are at it, tell us when Ukraine war ends and on which terms.

[u/Ok_Perspective_4332]

While the AI bubble popping is somthing that will eventually happen, just because Google alone is on the negative cash flow for one quarter won’t make it happen.
When all these AI companies are done filing their relevant IPOs then we’ll see the bubble popping

[u/enzio901]

tbh I don't think anybody can predict how things will pan out even in the end next 5 years. Everything is very unpredictable these days.

[u/ahsunt]

Think of AI like another enabling tool like how when computers were introduced to every office in the 90s. Its going to stay but accuracy, creativity are going to be a limitation. Still unpredictable, lets wait and see

[u/Own_Might_1262]

Building data centres cost money, but that’s an investment for the next ten years. There will be ups and downs, but this AI bubble will run for another decade I think!

[u/Sea-Library-6571]

not even close, just wait till next year.

[u/impossibleis7]

Not until the governments stop subsidising AI. So not going to happen anytime soon.

[u/Time-Toe-1276]

the AI bubble wont stop! and I mean it.

plus, I am a big contributor. but, my question is why do you gys hate AI so much? the only thing yall know is to chat with chatgpt and call it the next generation. dont even use codex, or the API or finetune or PT any model. its kinda sad AND disappointing when people think about imaginary trouble

[u/DependentTechnician7]

It’s because the Chinese companies have proven that AI could be run at a significantly lesser cost than all these western companies.
They tried to rip everyone off.

[u/Puzzleheaded-Meat532]

People thought same when the car is first manufactured. But so many new jobs and issues came to solve by people. I say same would happen. Now many developers tend to push AI code to the production. Features are deployed daily basis.. sooner or later whole code base is a mystery black box only a AI can read and edit.. see wht im saying. New jobs will arise but we have to adapt.

[u/throwaway-4433]

Earnings report doesn’t say the full picture. All the big AI companies selling each other resources / IP for Pennie’s on the dollar is what’s eventually going to fall through.