I'm fairly certain this is why the current administration is so vehement about not letting anyone regulate AI. We know it's bubbling, they know it's bubbling. It's only a matter of time before the market finds irrefutable proof that AI has been oversold and investors bail.
this post was submitted on 18 Jul 2025
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Well, yeah. If I was a betting man, and I sometimes am, I would speculate that Democrats are going to hold the presidency next and it'll be just in time for the stock market to crash.
All it will take is one investigation, one major implosion (hopefully NVIDIA, OpenAI, or both) or something else for the underpinning to come loose.
Since Republicans are unlikely to launch any kind of criminal probe (or other kind of interfering action), they can most likely keep the bubble propped up for quite a while.
TBH, what I am more scared of is if the bubble doesn't pop soon. With OpenAI dumping money into consulting services and investors openly declaring that the end goal is to achieve vendor lock-in, it sets a ton of companies up for failure if they were dumb enough to make all of their core services dependent on OpenAI.
Either companies keep paying OpenAI to keep their core offerings alive or they can't, and go bankrupt if they can't convert their infrastructure and services.
The sooner that all of these shit OpenAI sub-service vendors die, the better. Venture capital will start drying up and OpenAI will lose their "path to profitability". (It's almost sounding like how meme coins support BTC..... I digress.)
Hell, I haven't even touched on inflated company valuations and how AI LLM market growth is being fabricated, in part, by shoving AI integrations into every product imaginable.
I'll shut up now, but my point is that I am just applying the same shit I saw back in 2008 where the magic product was sub-prime mortgages coupled with hyper-risky market bets. Obviously, there are differences, but the core failure modes are the same.
I honestly don't think ai can hold out that long. It's 2025 and the mood is already souring.
If I had to guess, the entire reason they're shoving AI integration into absolutely everything is to try to make it irreplaceably viable, if only to keep it relevant. The bubble pops when VC funding decides that maybe AI isn't the holy grail they thought it was and the market on it tanks (bringing every associated stock down with it). Personally, I'm wondering if this bubble is what brings the house of cards down with it, because the amount of money that is all in on AI is absolutely insane, and for no good reason.
That's exactly it, they're making themselves "indispensable" at the consumer level to hold on for dear life.
But, on the other hand, you have companies like Klarna that are successfully using AI to replace, in one case, 700 humans or 3/4 of their tier 1 support staff. And every other company perks up at that. There is definitely a use case for AI, it's still improving, and business will keep it going in some form (which will be great for the poor neighborhoods they put the data centers in).
Don't get me wrong, I certainly think AI/LLMs have their uses, more as an aid to humans. Medical diagnostics, front line customer service, clerical, every industry could benefit from having a computer doing basic to even advanced level support. What we're seeing now though is all these execs think that the tech is at the level where it can replace entire workforces, and that's where the fallacy lies. Imo, humans should always make the final judgement, especially when these decisions involve affecting other people. It has the ability to improve and enrich lives, but the way things are going is that they'll be used to make the line go up at the expense of people.
It’s insane. Either they are stupid or they think this awful product will be everywhere anyway. Also, what market will even exist when this idiocy destroys all of our institutions?
Every AI company CEO/C-suite is gambling that they won't be left holding the bag.
Either AI fails and CEO/C-Suite made their money already, or AI succeeds and they carved an early lead in the market and gamble even more.
Workers are only there to build the biggest stack of chips possible before it gets cashed out.
While I’m sad that people will be hurt, I’ll dance when this shit collapses
Think of all the souls who will be trapped in the metaverse once the server shuts down. Dozens of people trapped in Zuckerberg's purgatory. Real nightmare shit.
I don't buy it. The top 10 companies are mooning not because of AI, but because they're in bed with a powerful wannabe dictator. I don't mean to sound grim, but if I were a betting man I'd put my money on the unfairly advantaged companies too. Luckily I index invest and don't listen to this noise.
It’s backfiring badly as institutions get their data the hell away from American control. It will take a few years but the damage has already been done and can’t be reversed.
Article says there might not be a trigger... There's always a trigger.
But when I asked AI it said that it was a great investment...Nevermind, I see the issue now.
I'm unable to replicate your results. I get a long and nuanced aswer. Mind sharing the answer you got?
When I asked the same thing the conclusion was:
So is AI a good investment? The sector has long-term potential, especially in areas like chip manufacturing, enterprise automation, and maybe foundational model licensing. But it's also deeply speculative right now, with prices reflecting hype as much as earnings.
If you're thinking long-term and can stomach volatility, AI is worth including. If you're chasing short-term returns because you think “AI is the future,” you might be buying someone else’s exit.
I was just trying to be funny. I didn't literally ask AI. I just assumed the model would be trained to encourage investment.
That answer itself is pretty stupid.
Asking investment advice from a system that's designed to do nothing else but generate natural sounding language based on probabilities is pretty stupid.
That being said, what's wrong with this answer? I think it's more or less a good and balanced take.
Here's the first half of it that I left out:
spoiler
"AI" as an investment isn’t one thing—it’s more like a category of bets, ranging from hardware to software to services, each with wildly different risk profiles. So the honest answer is: yes, it can be a good investment—but only if you understand what you’re actually investing in.
Here’s why that nuance matters:
Buying Nvidia stock in 2019 was a good AI investment. Buying it now, after a 10x run-up? Much less clear—it’s priced as if they’re the sole arms dealer in a forever war.
OpenAI, Anthropic, etc. aren't publicly traded, so retail investors can't buy them directly. Instead, you get exposure via companies like Microsoft, Amazon, or other backers—meaning you’re not really investing in “AI” directly, but as part of a much broader bundle.
AI startups and ETFs are all over the place—some are thinly veiled hype vehicles chasing trends, while others are building real infrastructure (like vector databases, chip design tools, or specialized AI services). Picking the wrong one is like investing in Pets.com during the dot-com boom—it sounds techy, but the business might be garbage.
Thematic ETFs like BOTZ or ROBO give you AI exposure but are diluted by their attempt to hedge across subsectors. They tend to underperform when compared to cherry-picking the winners.
I wonder what will happen when the bubble bursts. I think there is a lot of people hoping this will mean that the fever dream ends and "AI" goes away. But how likely is that?
People hoping that are likely ignorant of what AI actually is. It's incredibly unlikely that AI "ends", at least not if/until things get really bad on a societal level to the point where our species loses its ability to produce and use technology altogether.
I'm not sure that this line's up the same way that the tech bubble did back in the day. Right now, they're firing people by the metric ass tons because AI can make existing people more agile at their jobs.
The collapse of AI might be more like the collapse of the horseless carriage. Do people come back and fill in for all the chatbots now?