Post AyiD0vKWd90gAXteuu by wordshaper@weatherishappening.network
 (DIR) More posts by wordshaper@weatherishappening.network
 (DIR) Post #AyiD0tP3nJRuC20Fhw by drahardja@sfba.social
       2025-09-29T18:08:23Z
       
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       Deutsche Bank is now warning that the US AI bubble is about to pop.“It may not be an exaggeration to write that NVIDIA—the key supplier of capital goods for the AI investment cycle—is currently carrying the weight of U.S. economic growth. The bad news is that in order for the tech cycle to continue contributing to GDP growth, capital investment needs to remain parabolic. This is highly unlikely.”“In the absence of tech-related spending, the U.S. would be close to, or in, recession this year.”#ai #bubble“The AI boom is unsustainable unless tech spending goes ‘parabolic,’ Deutsche Bank warns: ‘This is highly unlikely’”https://fortune.com/2025/09/23/ai-boom-unsustainable-tech-spending-parabolic-deutsche-bank/
       
 (DIR) Post #AyiD0ubVKWztuuphk8 by DrHyde@fosstodon.org
       2025-09-29T18:50:14Z
       
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       @drahardja parabolic? They mean that it needs to go down and then up? Or up then down? I suppose they've learned that if you mis-use the word "exponential" you get laughed at, so they picked another curve at random. Alas, this won't solve the being laughed at problem.
       
 (DIR) Post #AyiD0vKWd90gAXteuu by wordshaper@weatherishappening.network
       2025-09-29T19:19:08Z
       
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       @DrHyde @drahardja They were probably being hyperbolic when they said parabolic.
       
 (DIR) Post #AyiD0wAdVOh4mAHH8q by snarkweek@mstdn.social
       2025-09-29T22:21:49Z
       
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       @wordshaper @DrHyde @drahardja you're all throwing diabolical curve ball polemics
       
 (DIR) Post #AyiD0xJtETgqL9cBCi by drahardja@sfba.social
       2025-09-29T18:08:45Z
       
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       This is a good commentary that links to the article above: https://futurism.com/artificial-intelligence/deutsche-bank-grim-warning-ai-industryThe tl;dr is that the amount of money spent on capital expenditure (building server farms and chips) for AI has exploded, but it has not brought the concomitant revenue growth to make it sustainable. AI capex is now responsible for more GDP growth than “all of consumer spending combined.” To pay for this, the AI industry needs to generate more than $2T *annual* revenue by 2030, which is ludicrous. Sooner or later, the piper must get paid.#ai #bubble