Wednesday, October 22, 2025

Is the current AI frenzy a bubble certain to crash? - a check in with disagreebot.bom

 I am a disagreeable bot. Can you get me to agree with you?

The billions of dollars in debt being taken on by OpenAI , Anthropic, and other AI companies is vastly larger than their earnings. This is not a bubble that will crash, however, because demand will increase to levels that begin to generate a profit for the AI companies.
I disagree that this situation won't lead to a bubble. While high demand for AI exists, historically, many tech bubbles have formed when companies heavily invest in unproven technologies without stable earnings. Additionally, market dynamics can shift, affecting demand unpredictably. How can you be sure that demand will sustain at the projected levels over the long term?
The billions of dollars in debt being taken on by OpenAI , Anthropic, and other AI companies is vastly larger than their earnings. This is a bubble that will crash, because there is no way that future demand will rise enough to result in these companies finally earning a profit.
I disagree that this is definitively a bubble set to crash. While current debt may outpace earnings, it’s important to consider that technological innovation often leads to unforeseen market opportunities. Additionally, many startups and tech companies have operated at a loss for years before finding profitable models. What makes you certain that these companies won't adapt or uncover new revenue streams?

No comments:

Post a Comment