Key insights
- The author argues that the current AI investment narrative is a bubble, comparing the stock market to a casino where the house eventually wins. They believe that while LLMs are impressive, their practical utility for the average person is limited, and the cost of further AI development, particularly for advanced robotics, will outweigh benefits and potentially harm the environment. This suggests a significant downside risk for AI-related stocks and potentially broader markets if the bubble bursts.
What is the narrative right now?
It's "YOU MUST INVEST EVERYTHING IN AI OR BE LEFT BEHIND AS HUMANS ASCENDING INTO THE MATRIX... EXCEPT A GOOD KIND".
It is complimented by: "SELL ALL OTHER ASSETS, IN THE FUTURE YOU WILL NOT NEED REAL ESTATE, GOLD, LAND, OR ANYTHING TANGIBLE. ELON WILL PROVIDE YOU WIFI AND ROBOTAXIS AND ROBOT SEX SLAVES POWERED BY MYTHOS TECH"
Nothing could be further from the truth.
It's true that LLMs are pretty amazing. They save a lot of time on work, and more importantly can be used to make some actual breakthroughs in research, can probably drone strike kids in the middle east pretty accurately, etc... but for the average person they are largely useless beyond being a very advanced and more thorough google searches that contextualizes your search requests for you.
Also, the stock market literally is a casino for people who don't "gamble". Just like martinis are drinks for people who don't want to look like alcoholics (FYI zoomies a martini is straight vodka or gin, with a tiny bit of dry white wine, or sometimes none at all, it's literally just 2-3 shots of liquor).
This means that the house ALWAYS wins. And the way the house wins with stocks is by pulling all your resources in.... then dumping the living hell out of you.
We are absolutely in an AI bubble. Maybe 15% of what is being said will actually come true in the next decade. Why? Because we're reaching a point where the cost of improving AI is far outweighing it's benefit.
For example, a sex chat bot probably takes a few cups of water to run while you goon. But a sex robot? Using TSMC NIVDIA GPU's in her brain to calculate trillions of interactions with the physical environment so she doesn't rip your dick off with the wrong gyration? IT WOULD CONSUME LAKES
Do you understand? We're not going much further in the next two decades without hitting a wall where going any further would destroy our environment. Like actually, not in an Al Gore way. People don't understand how much energy and water data centers use, how incredibly destructive they are.
This is why people like Musk are saying we're going to build data centers on the moon. Like how stupid do you have to be to believe this? Even dumber than the people who think we're going to create a colony on mars before 2100.
It's all a scam, and this is the greatest one yet, and the rug is getting loaded up right now. Literally my mom's friends were talking about how they want to sell their house to invest in Micron.
Micron went from 100 billion to 1.1 trillion MC in 8 months. That's regarded.
And now, you see Jason Huang making the rounds on CNBC (boomer tube) telling people that buying into Nivida and Micron is going to be like owning google at the ground floor.
LOL WHAT? Micron is worth like 10 billion and it's valued at 1.1 trillion. Is leather jacket man saying that Micron is going to hit 30 trillion MC within 10 years, following google's post IPO rise?
Seriously guys, watch out. People have gotten drunk off the recent AI rises but this is simply not going to continue. I genuinely believe this is the last rug pull to end all rug pulls. Once everyone sells their assets to buy Nividia and Micron stock, they will rug and release a Hentai virus 2.0 which will solve the issue of having to give UBI to all the regards who sold their homes to buy TSMC at $800/share