Utsikt
Senior Member (Voting Rights)
The long term rates have increased by a lot very quickly. The 10 year US rate is at 4.95 %, which is almost at the peak before the finance crisis in 2008. The same is going on in other countries. In short, debt is getting very expensive and it’s probably going to stay that way for a long time.Interest costs are not falling and quite recently are rising again so you get to a point that this doesn’t add up at the scale they are trying. Capital markets won’t buy it.
The markets are essentially gambling right now, because none of the valuations of the largest companies make no sense if you look at the ordinary models you’d typically use.
The so-called AI winters of the past coincided with AI failing to deliver on the hype, but also with the technology failing to find broad use cases. I think the latter was most important. This time it will be different, because there are already so many use cases. But it’s impossible to predict the cost per capability, which will be the main limitation for what it’s used for as it is for any technology.There seems to be a lot of wishful thinking that a crash means the technology goes away. Not a chance. I don’t know what will happen but it’s not that.