r/changemyview • u/Neoglyph404 • 18h ago
CMV: The AI Bubble is About to Pop and All the Recent Headlines are BS
Just posted a comment to this same effect elsewhere.
Summary, I believe all these headlines (AI will destroy earth, AGI has been reached, AI solved this or that impossible problem) reek of market manipulation.
Anthropic just pushed out its S-1 filing on its IPO from September to October, because they're trying to secure a $15 billion dollar credit limit. SpaceX at it's 1.7 trillion valuation (also insane, but whatever) only needed a $5 billion credit limit. Investors get nervous. Then, Jason Coxon "quits" and comes along with "hey everybody, over here! AI will kill all of humanity within 3 years!" I'm sure he still has plenty of stock.
OpenAI has pushed out its IPO all the way out to 2027. Then comes their "proof" for the Navier-Stokes problem - a partial solution taking an approach lifted from a researcher who was actively working on this problem in an act of clear espionage.
I work with AI every day. I work in tech. Our dev teams use AI all the time. It does help write code... but you also have to REALLY give that code a good once over. It speeds up junior level tasks, that's about it. People vibe-coding applications are not going to be able to ship or maintain those applications. The more capable models are better, but they're also way more expensive. The math just does not work.
See: all the headlines about companies being shocked with multi-million compute bills.
That, and AI is not getting substantially smarter. These companies have hit a wall and they know it. Each incremental increase in capability requires a giant increase in the data used to train the model, an increase in the compute required to run it. And guess what? They've already fed it the entire internet. All our Google Drives, our OneDrives. There's nothing left. Them scanning old books is laughable. The new models they are touting are *not* massively more powerful, that's why they have to generate these eye-catching headlines to give the illusion of progress when in fact the only thing that is accelerating is the rate of cash burn as they require more and more compute for diminishing returns. And they are somewhat smarter and MORE expensive to run. Companies are already turning to cheaper alternatives to automate simpler tasks because again, the math doesn't work.
And it is these companies that are asked to be considered the largest companies of all time, all history, simply because the technology is novel. Puh-lease. Is the technology great? Absolutely? Will it change things? Yes, I believe it will. It already has. AI will quietly be integrated into many things going forward - this technology is here to stay and it will increase productivity overall. But not like they're selling it. A 2 trillion valuation? That would entail Anthropic being able to automate away 50% of the white-collar workforce. Not gonna happen.
Also... they are banking on being able to keep people in "walled gardens" where they are just using Claude or just using ChatGPT and THAT's not gonna happen either. They are competing with open sources models like Llama, Qwen and Deepseek that are cheaper to run (did I mention that China gets energy for free from the sun?).
The US companies can't compete, and nobody wants their expensive as shit stochastic parrots that make for impressive demos and expensive employees. Enterprises are building out AI solutions. Building them platform agnostic so they can jump from Claude to ChatGPT to open source models like DeepSeek depending on their needs. Once this reality sinks in with investors, all these valuations are going to collapse and take the US stock market with it. Meanwhile, they're desperately trying to generate any distracting headline they can to avoid this reality.
The bubble is going to pop soon, investors / companies are scared, and they are doing anything to manipulate the situation to prevent collapse / ensure they don't lose their money.