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Is today the day the bubble bursts?
(lemmy.world)
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this post was submitted on 30 Jul 2026
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NASDAQ is down 5% this month, though I agree it’s too early to tell.
It will continue to decline steadily. I don't think it will all just be wiped out over night.
China is proving that you don't need so many massive and ultramodern datacenters to either train or serve good models. We're getting diminishing returns on compute, so these massive infrastructure investments into AI are premature at best.
The insane investment in data-center capacity stinks of capital misallocation - actual productive capacity being used to make things that in average have a negative ROI - rather than merelly money gambled in the modern day casino.
The Find Out stage is way worse when actual economic value has been wasted in useless stuff during the Fuck Around part than when it it was just money being used to buy overvalued virtual-value-tokens, since whilst in the latter case the money just changed hands, in the former the economic value was wasted and is gone for good.