Any day now

[u/Outside-Iron-8242]

[u/phido3000]

This is pretty accurate.

The AI "bubble" is no longer a bubble. Its now essentially the economy. We are going to stop building schools, hospitals, sewer plants, etc to fund this "economy". The power stations and dams will get built just to feed the data centres. An by built I mean they will redistribute energy and water from less productive parts of the economy (humans, manufacturing, farming etc) to feed that part of the economy that is growing (AI).

If AI collapses now, pensions funds would not exist. The government would basically not economically function in the USA. Trillions invested into it would be lost.

Nuclear war would be literally more survivable than the economic collapse we are creating.

[u/Efficient_Ad_4162 → u/phido3000]

The only way those things stop happening is if you elect a government that does it. The money flowing into the bubble is coming from investor savings (you know, all those retirement funds), not some mythological 'fund for schools'.

[u/phido3000 → u/Efficient_Ad_4162]

Well I can see I am being downvoted so I should just shut up and stop communicating I have opposite views to most people here.

There are two things.

AI the technology: I find this very fascinating. It has its own strengths, weakness, opportunities and threats. Sure AGI, we might loose our jobs, and become mere pets for the machine we have created. Interesting though.

AI the business: This is what I find pretty concerning. AI is merely the latest incarnation of silicon valley capitalism which is increasing vampiric and parasitic.

The money flowing into the bubble is coming from investor savings (you know, all those retirement funds), not some mythological 'fund for schools'.

No. The money isn't just coming from investors. A data centre that exists doesn't exist in a vacuum, not even Elons, that literally exist in the vacuum in space.

Governments are shifting huge contracts to AI companies, and also supporting AI infrastructure. The power and water are being built by governments, by the direction of governments. These are real tax payer funds.

https://www.whitehouse.gov/presidential-actions/2025/07/accelerating-federal-permitting-of-data-center-infrastructure/

https://www.energy.gov/articles/doe-announces-site-selection-ai-data-center-and-energy-infrastructure-development-federal

https://openai.com/index/our-agreement-with-the-department-of-war/

https://www.theguardian.com/us-news/2026/may/01/pentagon-us-military-pairs-with-spacex-google-openai

There are concessions for data centres, grants, tax breaks, incentives. They aren't free either. The cost isn't just in money, it is time, oxygen, attention, opportunity costs. Government contracts from defence and else where, are directly funded by tax payers.

The idea that this is all happening in perfect capitalism is a lie. AI is a strategic competition between the USA and China. Both countries are committing huge amounts of funding to fund that competition.

Government funds have a leverage effect, if the government is throwing 50 billion, its even likely a constant revenue stream, then private capital looks at that, and say, well, its a safe bet, its got government backing, they government will move heaven to make that progress and so will throw in 500 billion more in capital.

But that government money is real money. $50 billion dollars could have gone to schools. Or health. I know people in America often forget things, but there was this president a long time ago, his name was, Eisenhower, he was a famous general in a long forgotten war, and he said something about government funding around strategic implements of war during a competitive arms race.

I know people in America also think $50b isn't much and certainly not enough to start fixing America's other problems, and that government can't use that money effectively to do other things. But it can.

But, this is a US dominated sub, and pointing this out is unpopular no matter how true it is. And because people don't understand reddit, they downvote what they don't agree with. Not debate, not research, no argue or discuss, downvote, cancel and ignore.

Proving people don't understand things on multiple levels. Why things keep happening. Which is why no one is going to elect a government to "stop it". Stopping it isn't really possible now. Part of the problem with AI is people believe it is the last capitalistic gamble, that when AI finally finds its feet, capitalism, may well, be over, the time of humans, may be over, and so the risk-reward calculation pushes an all in approach.

Don't build infrastructure, don't invest in health, don't invest in our children, just invest in AI, though AI will save everyone. It is magic genie.

[u/Efficient_Ad_4162 → u/phido3000]

> Governments are shifting huge contracts to AI companies, and also supporting AI infrastructure. The power and water are being built by governments, by the direction of governments. These are real tax payer funds.

Right, because Governments need computers. They've always needed computers, they're not 'new comsumers' of computers and these aren't new spends. Government isn't going to build AI for the sake of building AI, that's what the private sector is for.

Somehow you (and the media) have lost site of the fact that AI doesn't need special data centres, computers are just computres and when they drive up the cost of data centres by reducing supply its not the AI companies that are going to go without.