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"The collapse of the #AI bubble is going to be ugly. Seven AI companies currently account for more than a third of the #StockMarket, and they endlessly pass around the same $100bn IOU.

AI is the asbestos in the walls of our technological society, stuffed there with wild abandon by a #finance sector and #tech monopolists run amok. We will be excavating it for a generation or more."
- @pluralistic

theguardian.com/us-news/ng-int…

#Technology #ArtificialIntelligence #Business #Economy #News #World

Text from article: When the AI-investment mania halts, most of those models are going to disappear, because it just won’t be economical to keep the datacenters running. As Stein’s law has it: “Anything that can’t go on forever eventually stops.” The collapse of the AI bubble is going to be ugly. Seven AI companies currently account for more than a third of the stock market, and they endlessly pass around the same $100bn IOU. AI is the asbestos in the walls of our technological society, stuffed there with wild abandon by a finance sector and tech monopolists run amok. We will be excavating it for a generation or more. To pop the bubble, we have to hammer on the forces that created the bubble: the myth that AI can do your job, especially if you get high wages that your boss can claw back; the understanding that growth companies need a succession of ever more outlandish bubbles to stay alive; the fact that workers and the public they serve are on one side of this fight, and bosses and their investors are on the other side. Because the AI bubble really is very bad news, it’s worth fighting seriously, and a serious fight against AI strikes at its roots: the material factors fueling the hundreds of billions in wasted capital that are being spent to put us all on the breadline and fill all our walls with hi-tech asbestos.

AI companies will fail. We can salvage something from the wreckage

AI is asbestos in the walls of our tech society, stuffed there by monopolists run amok. A serious fight against it must strike at its roots
Cory Doctorow (The Guardian)
#business #economy #News #ai #technology #world #tech #finance #artificialintelligence #stockmarket @Cory Doctorow

"This is the paradox of the growth stock. While you are growing to domination, the market loves you, but once you achieve dominance, the market lops 75% or more off your value...

Which is why growth-stock companies are always desperately pumping up one bubble or another, spending billions to hype the pivot to video or #cryptocurrency or NFTs or the metaverse or #AI...

The primary goal is to keep the market convinced that your company will continue to grow"

#Tech #AI #StockMarket #News #World

Text from article(edited for length): If you are an exec at a dominant company with a growth stock, you have to live in constant fear that the market will decide that you are not likely to grow any further. Think of what happened to Facebook in the first quarter of 2022. They told investors that they experienced slightly slower growth in the US than they had anticipated, and investors panicked. They staged a one-day, $240bn sell-off. A quarter-trillion dollars in 24 hours! At the time, it was the largest, most precipitous drop in corporate valuation in human history. .... This is the paradox of the growth stock. While you are growing to domination, the market loves you, but once you achieve dominance, the market lops 75% or more off your value in a single stroke if they do not trust your pricing power. Which is why growth-stock companies are always desperately pumping up one bubble or another, spending billions to hype the pivot to video or cryptocurrency or NFTs or the metaverse or AI. I am not saying that tech bosses are making bets they do not plan on winning. But winning the bet – creating a viable metaverse – is the secondary goal. The primary goal is to keep the market convinced that your company will continue to grow, and to remain convinced until the next bubble comes along. So this is why they’re hyping AI: the material basis for the hundreds of billions in AI investment.
#News #ai #world #cryptocurrency #tech #stockmarket

"“There is no alternative” is a cheap rhetorical sleight. It’s a demand dressed up as an observation. “There is no alternative” means: “Stop trying to think of an alternative.”

I’m a science-fiction writer – my job is to think of a dozen alternatives before breakfast."
- @pluralistic

theguardian.com/us-news/ng-int…

#Tech #Technology #AI #ArtificialIntelligence #StockMarket #Business #News #World #SciFi

Headline with illustration: Headline: The featured essay AI (artificial intelligence) AI companies will fail. We can salvage something from the wreckage by Cory Doctorow AI is asbestos in the walls of our tech society, stuffed there by monopolists run amok. A serious fight against it must strike at its roots Sun 18 Jan 2026 09.00 EST Illustration: two wireframe hands looming over a person working on a computer

AI companies will fail. We can salvage something from the wreckage

Cory Doctorow (The Guardian)
#business #News #ai #technology #world #tech #scifi #artificialintelligence #stockmarket @Cory Doctorow

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