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Why does everyone here think AI is a bubble?

T
Feb 27, 2025 · 08:36

AI has certainly not saved the world, but as far as new technologies go, it is being rapidly adopted and is already demonstrating impact in three areas:

1. Coding
2. Customer service
3. Consumer product engagement (Meta and ChatGPT come to mind)

Further, the technology shows the potential for improvement along multiple dimensions:

I: Chips will improve
II: Model architectures will be optimized
III: New architectures will emerge
IV: Some scaling of # of parameters will continue
V: Scaling through inference-time compute (using more time)

Further, if we’re talking stock market bubble, the amount of compute needed as these tools move from text —> images —> video —> real-time real world interaction will continue to increase significantly.

It’s crazy to me that so many are calling a bubble here when crypto was tolerated for far longer despite having still not shown one widespread real world application other than speculation.