this post was submitted on 28 Jun 2026
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No one thinks companies like Google or Microsoft are going away.
What's going to happen is that OpenAI and Anthropic will ultimately fold because they can't be profitable, Google and Microsoft will scale back their supremely unprofitable LLM operations, Micron and NVIDIA will plunge in value because all of a sudden their bloated prices aren't being paid by anyone, Oracle will suffer because OpenAI can't pay its enormous bills with them, massive data center projects will end before completion, and a whole lot of smaller businesses that embraced all this madness will collapse.
That will have devastating ripple effects throughout the economy. It's going to be a lot larger than the dotcom bubble bursting.
I do think the inflated valuations are in-fact existational threats to Microsoft and Google. Tech stocks are so over valued that they very well can go into a death spiral when investors no longer believe the company will grow exponentially. Its happened before, and will happen again. Thats why they are so desperate to hype AI. Thats the only illusion that have left to justify future growth.
I mean, the names will still be there, but you will have consolidation and buyouts and other changes of ownership. Some will continue as a shell of their former selves (like old school IBM), while others will just vaporise (Kodak). There's not really a reliable mechanism for a companies valuation to shrink by several orders of magnitude and just cut back and continue as a stable smaller company.
Obviously, the people at the top will get government handouts to stay rich and it will be all our pensions that get cleaned out. Thats how this works. Cheer the bubble bursting, but only because the earlier the less harm for all of us. Ram won't get cheaper either.
OpenAI maybe because it has a consumer focus and most of their users aren't paying, more likely they'll restrict free use and increase pop ups to get people to sign up
Anthropic is already profitable if you take out the enormous spend they have on training, which if the bubble bursts would leave them as the number 1 ai provider, it's also insanely in demand and has trouble keeping up with its current product, they also have several products mythos etc lined up
I doubt it, I think it'd be closer to liberation day tariff's or the oil crisis, it'll go down for a bit, many articles will be written about how this is the worst thing ever then 6 months later it'll be back up again
As said all the major players in this game are super profitable major companies, that won't change
Despite Lemmy doomer posting about AI every 2.8 nanoseconds it is getting better:
https://metr.org/blog/2025-03-19-measuring-ai-ability-to-complete-long-tasks/
The only thing that worries me is that:
https://www.cnbc.com/2025/10/14/ai-infrastructure-boom-masks-potential-us-recession-analyst-warns.html
The US economy might already be in the shitter and AI is just hiding it
First off... Why in the world would you take out the enormous spend they have on training? Training is an ongoing expense, not a startup expense. If your expenses exceed your income, then you're not making a profit.
Secondly, they had one quarter in which they reported (using non-GAAP accounting) a very slight amount of profit. That same quarter, SpaceX gave them a massive - and temporary - discount on rented compute.
We don't have any reason to think they're actually profitable.
You're way more optimistic than I am. If OpenAI and Anthropic crash, there are a huge number of businesses that have built themselves around their products, and those will crash, too. And I think you're downplaying the damage the tariffs have already done.
Again, not true. OpenAI is not profitable. Anthropic is almost certainly not profitable. Grok from SpaceX is not profitable. Google is profitable, but not from Gemini. Microsoft is profitable, but not from Copilot.
No business that is built entirely on AI is profitable. Not one.
Look... No one's arguing that the coding tools built around AI are entirely useless. They're not (although their capabilities are way, waaaaay over-hyped). The problem is an economic one: Serving up AI models cannot be profitable. There's just no way, especially now that we have small AI models that can be run on local workstations, and offer similar performance to the frontier models.
Qwen, running in a well-designed harness such as OpenCode, with a carefully written AGENTS.md file, is of comparable performance to at least Claude Sonnet, and possibly Claude Opus. All without the massive, ludicrous infrastructure requirements.
How is Anthropic supposed to compete with that? Sure, you can probably get something useful out of Opus faster, but at the cost of thousands of dollars. Using Qwen and similar local models is free.
The major players behind them all
nvidia, microsoft, google, oracle, etc are all profitable
inference is profitable, training is not
training is what the majority of data centre spend is going towards
if they want to be profitable pull back the training but right now they are competing for market share
feel free to look back at all the times lemmy predicted the end of spotify because it wasn’t profitable, now they turn around and cry it’s making money
At work nobody is talking like this, everyone is talking about claude and it makes sense, it’s the best thing since vscode
https://lemmy.world/post/48781135