Stock market analysts and investment bankers have been saying for a few months the the AI bubble rapid i.e.the surge in the value of these companies based on stock market trading in their shares, about to burst? Big tech’s gargantuan capital outlays – surging tenfold in the three years since ChatGPT was publicly launched – look increasingly unsustainable.
By some measures, artificial intelligence (AI) now sucks up more than half of America’s combined investment pool. Yet the promised uplift to business productivity hasn’t materialized.
According to techopedia.com, investment in artificial intelligence has sailed past levels last seen during the peak of the dotcom bubble. Jens Nordvig, founder and CEO of macroeconomic consultancy Exante, says AI-related capital expenditures now represent about 2% of America’s GDP. But scepticism is in short supple with people like Larry Fink, CEO of Blackrock, the world's biggest asset management firm fully on board with the hype.
Big tech AI data center spending has risen 10x in the last three years alone. The arrival of ChatGPT in 2022 has led to an AI bubble so big it’s consuming more than half of America’s cumulative investment pool.
So unquenchable is the industry’s thirst for cash that the world’s biggest economy may not have enough to slake it. OpenAI chief Sam Altman has already been fundraising beyond America’s shores, hoping to raise some $7 trillion from sovereign wealth funds and other sources in the UAE and elsewhere. AI has been said to pose an existential threat, not to humanity itself but to our savings, pensions and investments.
The AI euphoria driving this is partly due to global debt having ballooned from $64 trillion in 2000 to $338 trillion today.
Every major asset — stocks, bonds, property — has been inflated by
decades of easy money. What looks like prosperity is really devaluation in
disguise.
Meanwhile, most investors no longer pick stocks; algorithms do.
Trillions flow automatically into ETFs that chase price momentum, not
profit. When liquidity dries up, everything will fall together.
Even the gains AI firms are making come at a cost elsewhere. As the industry sucks up all the available capital, it’s also consuming massive amounts of electricity. Hyperscale data centers use roughly 4.5% of America’s electricity, a figure that could triple in the next two years. That’s raising electricity prices – up about 13% on average between October 2022 and June 2025.
AI centers require significant power to operate and a lot of water to keep them cool, straining local grids and raising utility water prices in areas where these data centers are concentrated. That puts upward pressure on inflation, making both households and businesses more costly to run.
And the supposed AI “revolution that is going to kick off the fourth industrial revolution and even pose an existential threat to humanity? A July MIT study found 95% of AI projects deliver zero profit. Yet trillions in capital keep flooding in. Data-center investment alone could exceed $5 trillion by 2030 — which would require AI services to generate revenues equal to 10% of total U.S. GDP just to break even. Pure fantasy economics and yet the oligarchic insanity over an AI takeover of everything goes on unabated.
On top of all that it emerged last week that AI large language models can quite easily be 'poisoned' and caused to spew out gibberish by hackers.
AI is a massive mis-allocation of capital running in trillions of dollars. Now the data-center theme seems to be going out, people rejecting data centers across the west, due to their energy issues, and effect on fresh water sources.
So many sub-sectors of stock markets have already been falling 6 months or more (transportation, chemicals, materials etc.) but this has largely been concealed because a few big tech corporations heavily invested in AI have propped up the indexes so the headline figures have looked good.
As Wall Street, Lndon and other stock exchanges brace themselves for tech carnage, analysts are starting to wonder if a bigger financial collapse than the dot-com collapse is just around the corner.
AI may be approaching its moment of truth. A technology built to unleash the economy is starting to weigh it down.
The investment flows that have and are still inflating the AI bubble are dependent on monetary flows, and right now we seem to be seeing another liquidity crunch, which will take down everything. The key issue is who is going to save the banks that are too big to fail this time.
FROM THE ARCHIVE:
Pretty soon, computer wizardry and artificial intelligence will allow video footage to be created that is practically indiscernible from the real deal. Add holographic technology, and soon a person apparently be speaking live on screen and you’d never know it was fake. The ethical ramifications of AI and technology are simply mind-boggling.
WikiLeaks have today released documents from the Vault 7 cache, a group of leaked information which contains details on the CIA Angelfire spyware tool which was developed to facilitate loading and execution of implants targeting computers using Microsoft Windows operating systems.
Electrosensitivity - the Wi - Fi disease.
So you thought people who wear tinfoil hats are crazy conspiracy theorists? Not so fast there, some of them might actually be onto something.While these people are not tinfoil hat wearers either literally or in a metaphorical sense, the measures they take to avoid exposure to electromagnetic radiation (radio - activity) can seem rather paranoid until you know more about them.
Google: Benefactor Of Mankind Or Evil Empire (or buch of idiotic nerds who got lucky?)
They way Google has come to dominate the internet just as the internet has come to dominate our lives can't all be down to good luck and careful planning can it? As this page develops you will see how sinister forces guided Google to their current position.
Shock, Horror! Millennials Safe Space Violated As Facebook Algo Accident Exposes Them To Diverse Ideas Late last month (August 2016,) the Zuckerbugger's zoons put an algorithm in charge of the Facebook “trending” feature, to select the most popular topics, articles and keywords on the web in a narrow timeframe and with due respect for the 'safe space' of millenials who can be traumatised if they encounter microaggrrrrressions in the form of controversial ideas or unorthodox opinions ...
Government Paid Trolls Are Using 'Psychology-Based Influence Techniques' in Social Media
Have you ever come across someone on the Internet that you suspected was a paid government troll? Well, there is a very good chance that you were not imagining things. Thanks to Edward Snowden, we now have solid proof that paid government trolls are using “psychology-based influence techniques” on social media websites such as YouTube, Facebook and Twitter.
Zuckerberg reveals Facebook Working On Apps 'Smarter Than Humans'
In an online Question and Answer session this week Facebook supremo and founding megalomaniacal sociopath Mark Zuckerberg announced that his company is engaged in building AI systems "that are better than humans at our primary senses."
War On Cash - A Country By Country Guide
More on the global war on cash being waged by ruling elites in parallel with their war on privacy as they try to exert total control over everything.
Obama Crowns Himself Emperor Of The Internet
Barack Obama's seizing control of the internet by executive fiat is a serious breach of The US Consitution but for the rest of the world is perhaps the clearest idication yet of what the man is all about. Comparisons with Hitler can no longer be dismissed as a conspiracy theory.
Online shills paid to control your perception by spreading propaganda using up to 10 online personas
Libertarian and freethinking bloggers and new media writers are having a great time. For years our efforts to warn people about the opush towards global fascism earned us hate attacks and accusations that we were conspiracy theorists. And now, alomst daily, another of those conspiracy theories is being proved true
War On Cash Begins, It Is Not About Keeping You Or Your Money Safe From Muggers
Government and big busin.ess has been nudging us towards abandoning cash for electronic money for a long time. Now the Frech government has become the first to move towards making cash illegal (because government can't keep tabs on what you do with your money when cash passes from hand to hand ...
Being Evil? Just Another Day At The Office For Google Boss.
Google boss Eric Schmidt has defended Google's barely legal tax avoidance practices saying Googl;e's contribution to UK national life is more important than the money they owe us. boycott Google, Big is a good serach engine.
Neuromancers and other neuroscience fiction
n recent years the scientific community have been clamouring to tell us thy are close to mapping the workings of the human brain and understanding the workings of the human mind. now I recall while recovering from a brain haemorrhage fifteen years ago being told by a very good doctor that medical science was only just starting to understand that the brain (a physical organ) and the mind (a mystery) were very different things. And I have neither read nor heard anything since to make me think he was wrong.
Quantum Soul
Science has for two hundred years dealt with the mystery of human consciousness by conflating the mind with the brain. In spite of a growing hill of evidence that the two are very different things and…
In the first part of Black Hat Biotech I reported on how a single corporation are close to establishing a monopoly as supplier of seed for the world's staple food crops.Now we look at how that same corporation either by buying political influence or other, less ethical means (if you know what I mean) has come close to ...
The Grand Illusion Of Self And The Key To Slowing The Ageing Process?
We all have an idea of who and what we are but is it anywhere near the truth. Science scoffs at notions like mind over matter but what if there is more mind than matter. The Hindu and Buddhist concept of Maya tells is what we think of as reality is an illusion ... (Index Philo and Sophia)
Obama's Dr. Evil Presidency OKs Biological Warfare Research Using Human Babies
This shocking article embedded here from Nature News shows how deeply corrupt and morally deficienty the Obama Adminidtration truly is. OKing experiments on American babies for a program that can only be aimed at handing more taxpayers money to Big Pharma is extreme even for the crack smoking, rent - boy fucking President of the New World Order's puppet regime.
Eugenics Belongs To The Left Not The Right Whenever the topic of population growth is brought up in a forum or comment thread usually on climate change, and it is suggested that any policy to save the environment must include measures to curb the…
Climate Fraud Watch: How The United Nations Made 50 million Refugees Disappear.
A decade ago The United Nations promised us that if carbon emissions were not curbed sea levels would rise swamping island nations and low lying coastlines and there would be 50 million refugees. Well carbon emissins increased, temperatures got sightly cooler and the refugess disappeared...
Facebook boss Zukerberg Wants To Own The Internet Facebook's latest acquisition Whatsapp cost $19bn, that's $40 per user. Whatsapp charge their users $1 per year. That means it will take Facebook 40 years to recover their outlay. And people are buying shares in this company? Insane. Facebooks Latest Violation Of Users PrivacyThe Daily Stirrer looks at Facebooks latest embarrassing climbdown after initially denying a new data mining scheme covertly violates users privacy ... Google's Schmidt Tells US Senators "We're Not MocrosoftGoogle executive chairman Eric Schmidt, giving his testimony to the Senate Judiciary subcommittee that focuses on antitrust began by recalling a ghost of the committee's past: Microsoft. Schmidt never actually mentioned its arch enemy but it is clear ... IBM Develop Computer Chips To Replicate The Human BrainTodays main story deals with an old chestnut that resurfaces ever two or three years. Some scientists dream of creating life in a test tube or growing human clones for spare parts. Others dream of using drugs or chip implants to turn us into unthinking automatons. And still more want to build machines that think like us and have human senses ... Facebook's Privacy Priacy Once again Facebook are in trouble over their contempt for users privacy. It is quite astounding that this upstart corporation that is quite open about its ambition to control the internet does not seem to understand there are lines that cannot be crossed when it comes to broadcasting or "sharing" details of users private lives. Webupon Facebook - privacy issues
[Internet Technology] ... [ Technology rules you ] ... [ Google governing usa ] ... [ Surveillance society ] ... [ Free speech threat ]
EXPLORE:
[Daily Stirrer] ... [ Our Page on on Substack ]... [Boggart Aboad] ... [ Ian Thorpe at Quora ] ... [ Greenteeth Home ] ... [ Greenteeth on Minds.com ] ... [ Here Come The Russians ] ... [ Latest Posts ] ... [ Blog Bulletin ]
