The “we all are” is doing some heavy lifting. I think we both know there are plenty of people who struggle with reading comprehension and critical thinking. We all should be able to do it, but alas some people ask ChatGTP and just roll with that answer.
Reddit is filled with comments accussing the other of "just having googled something", as if that research is a bad thing, because it didn't came straight out of your own mind in detail.
I made a joke. Not a good one, but it wasn’t a serious comment about the ability of AI to educate the masses regarding finance. Mostly a comment on the fact that everyone is aware of the potential for an AI bubble in the markets given their recent surge and the general volatility throughout the markets, etc. The “blessed” portion was sarcasm.
No, but like any good tool, when used right its a powerful tool that both enhances the work of the highest skilled experts and total amateurs alike. It enables even those who are not good with numbers to be able to do consistent, correct math.
That's the core issue for why AI doesn't compare to a calculator. It is not consistently correct, and until it can be, it remains a tool best used only by those with the skill to use it correctly. The technology can do good, its the blatant exploitation of it by techbros with too much of daddy's money that's actually negatively impacting us.
You can just get all of this information from a simple informative video or book, there's nothing advanced he's talking about. I think that's part of the joke, that he's just mirroring the intellectual sounding terms in a comedy set as a fish out of water thing.
people have been screaming this over and over again for the past year, Ed Zitron, Cory Doctorow, Emily Bender, they're a popular presence on all these tech and finance podcasts and channels, he's summarizing what they've all been saying, it's bigger than the dot com bubble, the gains don't justify the capex spending...etc
There also isn't any real gains because it's nothing more than a few large companies shuffling money around to look profitable when they're actually losing a shit ton of money.
Well appreciation is a real part of any gain, it’s just that gains are supposed to, and usually do, include income/earnings. It’s the income that’s missing, making the whole gain speculative appreciation.
Anthropic aren't. And OpenAI's net revenue tripled in the last year. How much of that they choose to blow on new model training is yet to be seen, but the 'AI labs will never be profitable' trope isn't as accurate as it was about a year ago.
Lots of companies do this at early stages. If this were truly a signal of an unhealthy market, the entire market would have been fucked a long time ago. Companies optimize for their cap tables and bookkeeping to some degree, which is what leads to this.
Lots of companies are not profitable for a long time, that's why they take funding.
Most of what he said isn't true. Firstly, no high profile AI company has gone public and when a company IPOs they don't "use index funds to artificially inflate their value". That latter sentence doesn't even make sense. Index funds just buy the companies that are included in an index. A company can’t put itself in one or somehow use them to pump up its own value.
The part that is true is that when a company goes public and its shares are traded on the market, early investors like VCs can eventually sell their shares and make money.
SpaceX is a high profile AI company (debatable) that has gone public. It worked for spacex. Anthropic and OpenAI want to essentially do the same.
One could argue that they did indeed inflate their price by utilising index funds. They had a 3x float multiplier. Only about 4% of their public free float was made availiable. As a result index funds had to purchase more shares than availiable supply warrents
Yeah, definitely debatable to label them an AI company entirely but yeah, AI is part of their business.
Your latter point wouldn't be the IPO "utilizing index funds" though. That's the company being added to an index by Nasdaq or S&P and then, with the increased demand from funds tracking that index, the value rises. Having very few shares available can amplify that effect but that's still not the company using index funds to pump its own value.
Anthropic is planning for this fall, and OpenAI already filed for an IPO with the SEC in June. A lot of smaller companies are taking in investment. Meanwhile big datacenter corps are going public, like SB Energy.
It's not really spot on at all. Like, the two leading AI companies aren't even public... and even if/ when they are, obviously your 401ks won't be suddenly invested in them. AI is unhealthy for the market in the sense that it's eating up VC money that could go towards other areas, and we have an extremely unstable market due to the current admin, etc.
Some very large companies may be very overvalued, and that may change, but part of that is that the rest of the market is doing very poorly. An unstable market means investors choose a few specific places to put money.
People should really not take economic information from clips of comedy shows that get posted to reddit.
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u/logand98 5h ago
Pretty much spot on, did not expect actual financial analysis from a comedy set lmao