It unfortunately won’t be, as we still have too many CEOs that invested heavily into forcing AI workflows and they rather let the company burn than admit a mistake.
But it could be an early sign for non tech savvy investors that are still wondering if they should invest in AI or not.
If the market gets spooked, it doesn’t matter what CEOs do. The companies burning is the bubble popping. See the dot-com or the prime-mortgage bubbles.
It always starts with a little wobble that causes investors to pause and wonder if all the hyper optimism is maybe unfounded and start to look at the fundamentals. Then they realize the emperor has no clothes and the bull turns into a bear.
Not saying that Coreweave is that wobble; many analysts and pundits will try to sweep it under the rug to maintain the irrational exuberance, but once sentiment starts to turn, it can happen fast… pop!
If the market gets spooked, it doesn’t matter what CEOs do.
That’s true, but when a CEO forces a company the size of Microsoft to use AI for all tasks, regardless of effectiveness, you can bet safely on AI companies selling their product because demand is literally being fabricated and forced into existence.
True. I’ve been on an extended sabbatical from work in an industry heavily impacted by LLM use, and I’m not looking forward to returning and being forced to use it, especially when it doesn’t benefit my productivity.
Still, even with this forced demand, spending is vastly outweighing the revenue generated. Venture capitalists seem to have an absurd amount of money to spend, but even their resources are finite, especially without ultra low interest rates.
Then again, I expected cryptocurrencies to implode years ago, but even after FTX it stabilized enough that the bubble has kept growing. It hasn’t had to weather a real recession yet and I expect that will apply a lot more pressure when that finally happens.
Between those two bubbles and the tariffs finally starting to take effect, it feels like we’re in for a really bad time. I really hope I’m wrong.
Edit: Forgot to mention that Intel seems to be thrashing. Their current CEO seems to be slashing the people he needs to recover from their current conditions and shutting down construction on fabs that represent their future. Never thought I’d see a day when Intel was facing an existential threat, but here we are.
It unfortunately won’t be, as we still have too many CEOs that invested heavily into forcing AI workflows and they rather let the company burn than admit a mistake.
But it could be an early sign for non tech savvy investors that are still wondering if they should invest in AI or not.
If the market gets spooked, it doesn’t matter what CEOs do. The companies burning is the bubble popping. See the dot-com or the prime-mortgage bubbles.
It always starts with a little wobble that causes investors to pause and wonder if all the hyper optimism is maybe unfounded and start to look at the fundamentals. Then they realize the emperor has no clothes and the bull turns into a bear.
Not saying that Coreweave is that wobble; many analysts and pundits will try to sweep it under the rug to maintain the irrational exuberance, but once sentiment starts to turn, it can happen fast… pop!
That’s true, but when a CEO forces a company the size of Microsoft to use AI for all tasks, regardless of effectiveness, you can bet safely on AI companies selling their product because demand is literally being fabricated and forced into existence.
True. I’ve been on an extended sabbatical from work in an industry heavily impacted by LLM use, and I’m not looking forward to returning and being forced to use it, especially when it doesn’t benefit my productivity.
Still, even with this forced demand, spending is vastly outweighing the revenue generated. Venture capitalists seem to have an absurd amount of money to spend, but even their resources are finite, especially without ultra low interest rates.
Then again, I expected cryptocurrencies to implode years ago, but even after FTX it stabilized enough that the bubble has kept growing. It hasn’t had to weather a real recession yet and I expect that will apply a lot more pressure when that finally happens.
Between those two bubbles and the tariffs finally starting to take effect, it feels like we’re in for a really bad time. I really hope I’m wrong.
Edit: Forgot to mention that Intel seems to be thrashing. Their current CEO seems to be slashing the people he needs to recover from their current conditions and shutting down construction on fabs that represent their future. Never thought I’d see a day when Intel was facing an existential threat, but here we are.
I think that Microsoft, Apple, Google are too big to fail, regardless of how terrible they are being managed.
Exactly the same as GM, Ford and Chrysler were too big to fail during the last GFC.