Just wrote a 10k word post on the AI bubble, intended for people outside tech with lots of threads, answering:
Why bubbles happen.
Where the risk is w/ the LLM bubble.
Why LLMs can't escape a bubble.
How LLMs slot into the history of AI.
And more!
aibubble
On reflection, I think the big mistake is the conflation of #AI with #LLM and #MachineLearning.
There are genuine exciting advances in ML with applications all over the place, in science, (not least in my own research group looking at high resolution regional climate downscaling), health diagnostics, defence etc. But these are not the AIs that journalists are talking about, nor that are really related the LLMs.
They're still good uses of GPUs and will probably produce economic benefits, but probably not the multi- trillion ones the pundits seem to be expecting
https://fediscience.org/@Ruth_Mottram/114896256761569397
Ruth_Mottram - My main problem with @edzitron.com 's piece on the #AIbubble is that I agree with so much of it.
I'm now wondering if I've missed something about #LLMs? The numbers and implications for stock markets are terrifyingly huge!
(1/10) I think by now everyone knows that AI (LLMs) is a bubble. Just a day after I published this post #Sora was shut down. The real question that needs to be answered is what type of bubble this is. A thread 🧵:
Another in a growing list of evidence that the financial underpinnings of the AI mania are coming unglued.
One speaks of "exposure" to a concerning risk, not to a bonanza of wealth creation. Some of the quotes in this article seem to be cherrypicked to minimize alarm, which I disagree with: there is cause for alarm. Looking between the lines (e.g. use of words like "exposure" and "choking"), one sees a dismal picture emerge.
Banks seek to offload risk to avoid ‘choking’ on data centre debt
#AI #GenAI #GenerativeAI #AgenticAI #LLMs #Claude #ChatGPT #Gemini #NoAI #AIBubble #AIHype
One speaks of "exposure" to a concerning risk, not to a bonanza of wealth creation. Some of the quotes in this article seem to be cherrypicked to minimize alarm, which I disagree with: there is cause for alarm. Looking between the lines (e.g. use of words like "exposure" and "choking"), one sees a dismal picture emerge.
Banks seek to offload risk to avoid ‘choking’ on data centre debt
Global lenders explore private deals and risk transfers to cut exposure to AI boom
#AI #GenAI #GenerativeAI #AgenticAI #LLMs #Claude #ChatGPT #Gemini #NoAI #AIBubble #AIHype
Edited 128d ago
(1/12) The 'AI bubble' is a political economy story I've spent over 20k words unraveling. LLMs aren't just a technology; they're a mirror of the same delusions that drive market fundamentalism: a naive understanding of innovation, deference to capital, and the denigration of human labor.
Our debates are implicitly about all of these and more. A thread 🧵:
Edited 126d ago
"Organizations aren’t burning millions or hundreds of millions of dollars a year on AI because it’s good, they’re doing it because they are run by people who do not know what the fuck they’re doing.
Generative AI is catnip for hall monitors, snitches, toadies, and any other group that hates work and loves talking down to others. Put another way, it ingratiates losers who believe that learning to do or being good at something is a waste of time, because they deserve to just do what they want without any of that messy “effort.”
While I’m not saying every LLM user is an imbecile, they’re built to convince the mediocre and incurious that they’re remarkable, and it turns out that a great many of them run venture capital firms and Fortune 500 companies.
I also want to be clear that while there are sane and normal people who use these things, they’re mostly drowned out by a crowd of people that oscillate between bootlicking and regurgitating capitalist mythology in a way that makes it hard to trust anybody who spends significant amounts of time using an LLM.
One thing you’ll notice about the most moistened AI boosters is that they lack much degree of pride in their work. Everything they say must, at some point, compliment the mindless, unprofitable, unreliable tool underneath it — how “incredibly powerful” it is, how it’s “only getting better,” how it’s “only the beginning” of something that’s eaten over a trillion dollars and absorbed the majority of venture capital."
https://www.wheresyoured.at/the-revenge-of-the-business-idiot/
#AI #GenerativeAI #LLMs #AIBullshit #AIBubble #AIHype #Programming #SoftwareDevelopment
New front in the data center resistance: underwater.
"DeepGreen Western Passage SPV LLC" sounds like some kind of shell company created by one of the bigger players.
From Eastport residents push City Council to oppose DeepGreen’s underwater AI data center, https://themainemonitor.org/residents-push-eastport-oppose-data-center/
#AI #GenAI #GenerativeAI #DataCenters #DataCenterBuildout #AIBubble #NoAI #maine
"DeepGreen Western Passage SPV LLC" sounds like some kind of shell company created by one of the bigger players.
Suellen Hendrix, an Eastport resident, told councilors she believes “billionaire investors” have little interest in the city’s welfare, calling underwater data centers an “understudied industry” and urging the City Council to enact a moratorium.
“This man (Wolfson) is a one‑percenter,” Hendrix said. “He doesn’t care about us. There’s a reason he isn’t building it in Cape Cod, where he lives, and he’s choosing Eastport.”
From Eastport residents push City Council to oppose DeepGreen’s underwater AI data center, https://themainemonitor.org/residents-push-eastport-oppose-data-center/
#AI #GenAI #GenerativeAI #DataCenters #DataCenterBuildout #AIBubble #NoAI #maine
The AI bubble looks fit to burst, Bank of America director says.
Bank of America strategist warns AI bubble mirrors dot-com peak — recommends bonds and defensive stocks as 'post-bubble roadmap'
https://moneywise.com/investing/stocks/bank-america-ai-bubble-post-bubble-roadmap-bonds-stocks
#news #tech #technology #AI #aibubble #grok #aislop #banking #finance
AI Fear and loathing 1: https://www.bloomberg.com/news/articles/2026-06-26/chinese-hedge-funds-warn-the-ai-super-bubble-is-ready-to-burst
AIF&L 2: https://www.ft.com/content/e81ce414-e4bd-4e8c-bac7-94f7bf17def4?syn-25a6b1a6=1
AIF&L 3: https://www.bloomberg.com/news/articles/2026-06-26/ai-anxiety-is-fueling-burnout-across-silicon-valley-s-tech-workers
That last one is really soul-shredding.
Hmm.
The announcement by Meta that they'll start selling AI compute potentially broke one of the pet narratives of the AI bubble: compute is so scarce that we need to spend all the money to build more. That story is the justification for crypto-turned-AI companies with poor fundamentals like CoreWeave to continue existing.
Nothing about stock or commodities prices makes any sense anymore so maybe tomorrow their stock will be up 2x.
#AI #AIBubble #CoreWeave #CRWV #Meta #StockPrice
The announcement by Meta that they'll start selling AI compute potentially broke one of the pet narratives of the AI bubble: compute is so scarce that we need to spend all the money to build more. That story is the justification for crypto-turned-AI companies with poor fundamentals like CoreWeave to continue existing.
Nothing about stock or commodities prices makes any sense anymore so maybe tomorrow their stock will be up 2x.
#AI #AIBubble #CoreWeave #CRWV #Meta #StockPrice
"Too Big To Fail"
Remember that?
Now tax dollars (and Pounds) will go into bailing out the AI companies when the bubble bursts.
Get the feeling this was planned out years ago?
https://www.theguardian.com/business/2026/jun/12/ai-ipos-stock-market
#SpaceXIPO #AIBubble #AIHustle #Economy #EpsteinClass #TechBros #Politics
Cory Doctorow (@pluralistic )
What comes after the AI bubble?
There will be an after.
https://www.instagram.com/reel/Da8RvuAIaMV/?igsh=MTIyOWF2dGRudXlhMg==
Edited 43d ago
A lot of people seem to believe that if you ask an LLM to look through a database and calculate something, or extract data according to some criteria, then it will do exactly what you ask for.
It won't. It will calculate an output that looks normal. And you won't discover this unless you do the same operation manually and compare.