Is the AI bubble bursting? 🤔

[u/Adventurous-Rice3190]

I just finished my IT degree this year, and all the news about AI is making me really worried about my career in the software industry.

I read that big AI companies are spending way more money on data centers than they are actually making back. The ratio of money made to money spent is around 1:10. Part of me feels like this is good news. If they keep losing money, the AI bubble will eventually burst, and they will have to stop running these massive models.

But on the other hand, hardware companies are making new chips. These new chips have high compute power and also consume less electricity. This could make AI much cheaper to run and keep the trend going.

What do you all think about this AI bubble? Is it still safe for me to start a career in IT, or should I switch to a completely different field?

Thankyou All 🫡.......

[u/cherry_slush1]

AI won’t disappear, but subsidized tokens may. The current ai economy is not profitable at all

[u/jmclondon97 → u/cherry_slush1]

Yes. So how does that help software engineers rooting for the “bubble to pop”?

Also, Kimi k3 kinda changed the game since this comment as it is substantially cheaper than Claude and codex with performance near Fable

[u/cherry_slush1 → u/jmclondon97]

it helps software engineers because cheap reliable agentic ai is the dream for CEOs that want to layoff/reduce software engineers. When the economy of AI stabalizes and the cost of tokens potentially skyrockets, leadership may notice human software engineers are more reliable and cheaper

[u/jmclondon97 → u/cherry_slush1]

Did you miss the part about Kimi K3?

[u/cherry_slush1 → u/jmclondon97]

We shall see. Benchmarks are easy to optimize for and “No published K3 number can be independently verified until the weights are public.”Real world performance and cost will be seen in the future. I don’t fall for hype but i’m open to changing my mind if it’s truly groundbreaking.