1003
you are viewing a single comment's thread
view the rest of the comments
[-] TheFeatureCreature@lemmy.ca 309 points 1 day ago

Microsoft has gone all-in on AI to the detriment of basically every other aspect of their business. They are in deep deep shit when the bubble finally pops.

[-] OldQWERTYbastard@lemmy.world 134 points 1 day ago

And I am so ready for the bubble to burst.

15% of the total United States GDP is a single company. I struggle to comprehend the scale of that, but one thing is for certain; it's going to bite us in the ass eventually.

[-] kinsnik@lemmy.world 133 points 1 day ago* (last edited 1 day ago)

15% of the total United States GDP is a single company

no, it is not. you struggle to comprehend it because it is not true.

it is comparing different things. one is a valuation, the other is the value of goods and services over a year. the comparision would be with yearly revenue of a company

[-] wewbull@feddit.uk 27 points 1 day ago

The stat that's going around at the moment is that 30% if the GDP is transactions between the "Magnificent 7". That one is fair because it's economic activity.

The underlying economy is in recession with the AI frosting on top pushing it to break even levels.

[-] Bronzebeard@lemmy.zip 6 points 1 day ago* (last edited 1 day ago)

That one is even more ridiculously untrue.

Those stocks make up 30% of S&P 500, by weight.

Not GDP.

[-] OldQWERTYbastard@lemmy.world 2 points 1 day ago

Thanks for the clarification.

[-] SkunkWorkz@lemmy.world 21 points 1 day ago

Stock valuation of a company is not calculated int the GDP. Only domestic revenue is. There is no company that makes trillions in revenue.

[-] OldQWERTYbastard@lemmy.world 11 points 1 day ago

True, but Nvidia's market cap is still equal to 15 percent of 30.486 trillion. What's worse is that it's ALL built on speculation.

This house of cards WILL fall.

[-] wewbull@feddit.uk 15 points 1 day ago

Nvidia is less speculation that the other companies mixed up in this. They at least sell physical goods which they've been shipping.

Microsoft, Google, X, Meta - Oh boy!

[-] dustyData@lemmy.world 25 points 1 day ago* (last edited 1 day ago)

They haven't. Part of the reason the bubble is so bad is that NVIDIA has been giving credit incentives to openai and other llm companies. Essentially giving them money so they use it to buy NVIDIA chips, so they can claim higher sales numbers. But there's no revenue. The AI bubble is 4 or 5 companies shuffling money to each other to inflate numbers so investors inject more money.

The only ones making bank are CEOs when they take their bonuses and cash outs. The companies themselves are bleeding. OpenAI needs something like $700 billion dollars more to survive until 2030. LLMs simply don't make any money. Any savings from ai use has been from layoffs. It will all eventually crash out when it is obvious that AI use ultimately hurts revenue, no matter how much it saves in production.

[-] Cyberflunk@lemmy.world 7 points 1 day ago

15% of American GDP is approximately $4.57 trillion.

[-] OldQWERTYbastard@lemmy.world 1 points 1 day ago

Absurd, isn't it?

[-] Grainne@lemmy.dbzer0.com 1 points 1 day ago* (last edited 1 day ago)

It's not one company, but the top 5 companies make up 40% of South Korea's economy, with the top 30 76.9% of their GDP. It's scary to imagine the power they wield over the peoples lives.

[-] boonhet@sopuli.xyz 11 points 1 day ago* (last edited 1 day ago)

Power over their lives? Nonsense, the people of S~~amsung~~outh Korea are completely free to use iPhones instead of Samsung phones if they want! They can also leave their Samsung apartments to work at the Samsung office, built by the Samsung construction company using Samsung heavy machinery, any time they want! If they were to get injured on the way, they'll get treated at Samsung Medical Center and not to worry, of course their Samsung insurance will cover it.

[-] PrinceOfSloth@lemmy.zip 77 points 1 day ago* (last edited 1 day ago)

dont worry govt bailouts with public money will come in. Socialism for the rich and capitalism for the poor.

[-] rhubarb@lemmy.world 5 points 1 day ago

It’s not socialism, it’s welfare.

[-] _stranger_@lemmy.world 40 points 1 day ago

only if you consider companies as people.

[-] rhubarb@lemmy.world 4 points 1 day ago

I’m not agreeing with it but if it were socialism we would at least have public ownership of the bailed out company. Any bailout would just be corporate welfare with little return

The bailout should transfer ownership to the public. Employees and (sane) products/services can stay, the idiots who tanked the company can shuffle off.

[-] Zorque@lemmy.world 3 points 1 day ago

That's the same with socialism, though.

[-] _stranger_@lemmy.world 1 points 1 day ago

Socialism would do what's best for society.

[-] Zorque@lemmy.world 2 points 1 day ago

Socialism would do what the majority of people wanted it to do, it's not a benevolent entity the marches through society and fixes everything. It's merely a tool for society to use to more directly appease the masses needs.

[-] pastermil@sh.itjust.works 1 points 1 day ago

Welfare? For billion dollar companies? That's rich.

[-] rhubarb@lemmy.world 3 points 1 day ago* (last edited 1 day ago)

There’s a ton of precedent. Welfare for the rich is justified all the time while those who truly need it are less and less

[-] jali67@lemmy.zip 23 points 1 day ago

Completely gave up on the console wars thing too for AI. Such ridiculous leadership by Sadya

Microsoft's business model has always been getting businesses who are even stupider than them to give them tons of money. Nothing is ever going to change that calculus.

[-] MrScottyTay@sh.itjust.works 10 points 1 day ago

Azure might keep them afloat but everything else will likely crumble and they'll have to downsize to mostly just being a cloud provider.

[-] Dojan@pawb.social 6 points 1 day ago

Gods I wish for this.

[-] boonhet@sopuli.xyz 3 points 1 day ago

Don't worry, they have like 250 ERPs too. And they're way more expensive than, say, Odoo, though I guess not as expensive as SAP.

[-] Appoxo@lemmy.dbzer0.com 1 points 1 day ago

Sorta like AWS and Amazon (but that Microsoft may crumble?)

[-] clot27@lemmy.zip 1 points 1 day ago

like any other tech giant

this post was submitted on 02 Dec 2025
1003 points (100.0% liked)

Technology

77236 readers
5323 users here now

This is a most excellent place for technology news and articles.


Our Rules


  1. Follow the lemmy.world rules.
  2. Only tech related news or articles.
  3. Be excellent to each other!
  4. Mod approved content bots can post up to 10 articles per day.
  5. Threads asking for personal tech support may be deleted.
  6. Politics threads may be removed.
  7. No memes allowed as posts, OK to post as comments.
  8. Only approved bots from the list below, this includes using AI responses and summaries. To ask if your bot can be added please contact a mod.
  9. Check for duplicates before posting, duplicates may be removed
  10. Accounts 7 days and younger will have their posts automatically removed.

Approved Bots


founded 2 years ago
MODERATORS