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Big tech needs to justify AI spending as investors dump stocks

44 points by 1vuio0pswjnm7

by isoprophlex

2 subcomments

Is this it, is it finally happening? Is RAM going to become cheaper soon?
I hope the crash, when it comes, won't wipe out peoples pension funds... but I've been charging up my schadenfreude towards the breathless AI hypeboys for a LONG time

by k310

0 subcomment

by matrix87

0 subcomment

I don't think big tech is going to be hurt that much. Or if they hurt, it will be for unrelated business reasons like ad spend going down.
Maybe capacity spend will go down for the time being and the hardware stocks will go down. Maybe a bunch of these startups will go backrupt or get acquired. The defensive play of building out the infrastructure and software stack is probably going to continue. These companies have been playing catch up with nvidia for a while now and won't make that mistake twice.
It's kind of mind blowing how much work remains to be done with these models (e.g. finding ways to integrate them in the rest of the economy, finding more resource efficient ways to run them, ads monetization).
It seems like right now, a lot of stocks like oracle, adobe, IBM, and intuit are getting reevaluated.

by seizethecheese

3 subcomments

Big example in the article is Alphabet, so I looked up their stock and it’s up 86% in last 12 months. Incredibly short term article.

by daft_pink

0 subcomment

I would say this month we are buying expensive personal subscriptions for the people who really need AI and canceling subscriptions for people who really don’t adopt it instead of having Gemini Claude and ChatGPT subscriptions for everyone for all 3. We just have cheap Gemini with google workspace for everyone and high end personal for power users.
Anecdotal but this is the current state at our company.
Anecdotal but