this post was submitted on 24 Jun 2025
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It would be pretty unusual for a company on the scale of Facebook or Microsoft to go under due to a bubble like this, although it is slightly possible they might slip down a tier in the shuffle. Its more likely well see lots of shitty little companies tacking AI onto things that dont need AI go under, and the speculative ventures burning investor money on market share or technologies that may never turn profitable will be thinned out greatly. Its also possible we could see some big names that dont have revenue outside the AI market suffer financial setbacks and be absorbed. Its also possible the bubble could continue to grow for years and we could see some really ridiculous investments and an even more devastating crash in the end.
I think the difference here is that you can't quite just put an AI tag on something, and then investors flock to give you money.
The AI companies that are invested in, are mostly companies that actually have something to show. And the biggest investment and benefactor is Nvidia that actually makes loads of money from AI products.
But they do. Lots of crap has "AI powered" plastered on the investor prospectus with no real world application. The worst Ive seen has been targeted at audiences that wernt burned by .com, such as in China, but even in the US youll have a hard time finding a startup that doesnt incorporate AI in some way.