Key insights
- The author argues that public sentiment towards generative AI is turning negative, citing the closure of OpenAI's Sora and the forced integration of AI into various applications. They suggest the current AI model is overhyped and unsustainable, potentially impacting GPU manufacturers like NVDA if AI companies fail to monetize their products effectively. This could lead to a moderate negative impact on AI-related stocks.
When AI features are shut down the people rejoice. OpenAI recently announced they are closing down Sora, which not long ago was being hyped up as a threat to the trillion dollar movie industry. Yet instead of remorse at a beloved product going away, the public reaction seems to be unbridled jubilation. See the many comments underneath their Twitter post https://x.com/soraofficialapp/status/2036546752535470382
Some of the top comments include:
"We will dance on your grave and sing songs of your demise"
"#ripbozo"
and "HAHAHAHA GET FUCKED"
Oh how far we've come from upending the entire film industry.
This isn't just a Sora thing either, the public is completely fed up with AI at this point. They hate being told they are going to be replaced in 6-12 months whether that be by OpenAI or the Anthropic alternative. They hate seeing AI forced into everything they use, such as Microsoft Copilot showing up in their e-mail, in Office applications, in the desktop toolbar, and in MS Paint for crying out loud!
Since when does a killer idea need to be forced fed to people to have adoption? Oh, that's right, since never, that's when.
All that trouble these corporations have gone through and nobody in the AI space can turn a profit except for those selling GPUs. But if the people buying those GPUs aren't making money, that can't last either at anywhere near the current pace.
Yes, in general, AI (text generation, video generation) is doing interesting things we've never seen before, but this current form is overhyped, over-leveraged and unsustainable. Perhaps it can evolve into something that doesn't require massive data centers and state of the art GPUs, but as it stands now #ripbozo.