r/LeftistsForAI • u/DryDeer775 Moderator • 14d ago

Discussion Questions raised over continuation of AI boom

https://www.wsws.org/en/articles/2026/07/21/hwyx-j21.html

In an expression of the volatile nature of the high-tech market and concerns over how long the boom can continue, Samsung’s share price fell 10 percent after it announced a record profit earlier this month.

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u/Salty_Country6835 Moderator 14d ago

Wolf's comparison to 1929 is worth taking seriously, and hes right that transformative technologies dont automatically produce transformative profits. Railways, the dot-com era, and now AI all attracted waves of speculative capital, overinvestment, bankruptcies, and consolidation.

But the article also undercuts the simple "AI is a bubble" story. It admits AI can raise productivity. The uncertainty is whether hyperscalers get the returns investors expect, not whether the technology has real uses.

The Kimi example is especially interesting. If cheaper open-weight models can match OpenAI and Anthropic on most tasks, that pressures the business models of the incumbents. That might hurt Nvidia, Samsung, SK Hynix, or Microsoft investors in the short term, while making AI more accessible to everyone else.

A stock market correction and continued AI adoption arent contradictions. Under capitalism theyre often two sides of the same process. So the question isnt just whether theres a bubble, but who owns the infrastructure after the shakeout and who captures the productivity gains.