#Tag
🫧 Without data centers, GDP growth was 0.1% in the first half of 2025, Harvard economist says | Fortune
｢ investment in information-processing equipment and software was only 4% of U.S. GDP for the first half of 2025, yet it also accounted for fully 92% of GDP growth over that period ｣
🫧 Without data centers, GDP growth was 0.1% in the first half of 2025, Harvard economist says | Fortune
｢ investment in information-processing equipment and software was only 4% of U.S. GDP for the first half of 2025, yet it also accounted for fully 92% of GDP growth over that period ｣
💥 Accenture CEO Says It's Sacking Employees Who Won't Embrace AI
｢ But if Accenture workers fail to appease their overlords, the CEO says they’ll be dumped like yesterday’s trash. In their place, the IT firm will hire people who already have the AI “skills” necessary to appease stockholders. This includes tapping into an increasingly “global” workforce — a nice way to say “outsourcing jobs to underpaid gig workers in the global south.” ｣
https://futurism.com/future-society/accenture-layoffs-ai
💥 Accenture CEO Says It's Sacking Employees Who Won't Embrace AI
｢ But if Accenture workers fail to appease their overlords, the CEO says they’ll be dumped like yesterday’s trash. In their place, the IT firm will hire people who already have the AI “skills” necessary to appease stockholders. This includes tapping into an increasingly “global” workforce — a nice way to say “outsourcing jobs to underpaid gig workers in the global south.” ｣
https://futurism.com/future-society/accenture-layoffs-ai
🔥 Microsoft 365 Copilot's commercial failure
“Today we’re introducing Office Agent, a multi-agent system that builds upon an open-source stack, Anthropic's Claude model, and a new taste-driven development (TDD) paradigm to deliver polished PowerPoint presentations, ready-to-use Word documents, and soon Excel spreadsheets.”
https://www.perspectives.plus/p/microsoft-365-copilot-commercial-failure
🔥 Microsoft 365 Copilot's commercial failure
“Today we’re introducing Office Agent, a multi-agent system that builds upon an open-source stack, Anthropic's Claude model, and a new taste-driven development (TDD) paradigm to deliver polished PowerPoint presentations, ready-to-use Word documents, and soon Excel spreadsheets.”
https://www.perspectives.plus/p/microsoft-365-copilot-commercial-failure
The financial AI bubble. It will pop at some time but don't make the mistake thinking that the technology will dissappear or the impact it will have on society (besides the destruction of the bubble bursting).
#AI #bubble #finance #investment
https://www.bloomberg.com/news/features/2025-10-07/openai-s-nvidia-amd-deals-boost-1-trillion-ai-boom-with-circular-deals
The financial AI bubble. It will pop at some time but don't make the mistake thinking that the technology will dissappear or the impact it will have on society (besides the destruction of the bubble bursting).
#AI #bubble #finance #investment
https://www.bloomberg.com/news/features/2025-10-07/openai-s-nvidia-amd-deals-boost-1-trillion-ai-boom-with-circular-deals
🗽 Magnificent Seven surpass EU GDP: Is this a tech bubble warning? / Euronews
🎈 This Is How the AI Bubble Will Pop
｢ The Apollo program allocated about $300 billion in inflation-adjusted dollars to get America to the moon between the early 1960s and the early 1970s. The AI buildout requires companies to collectively fund a new Apollo program, not every 10 years, but every 10 months ｣
https://www.derekthompson.org/p/this-is-how-the-ai-bubble-will-pop
🎈 This Is How the AI Bubble Will Pop
｢ The Apollo program allocated about $300 billion in inflation-adjusted dollars to get America to the moon between the early 1960s and the early 1970s. The AI buildout requires companies to collectively fund a new Apollo program, not every 10 years, but every 10 months ｣
https://www.derekthompson.org/p/this-is-how-the-ai-bubble-will-pop
Deutsche Bank is now warning that the US AI bubble is about to pop.
“It may not be an exaggeration to write that NVIDIA—the key supplier of capital goods for the AI investment cycle—is currently carrying the weight of U.S. economic growth. The bad news is that in order for the tech cycle to continue contributing to GDP growth, capital investment needs to remain parabolic. This is highly unlikely.”
“In the absence of tech-related spending, the U.S. would be close to, or in, recession this year.”
“The AI boom is unsustainable unless tech spending goes ‘parabolic,’ Deutsche Bank warns: ‘This is highly unlikely’”
https://fortune.com/2025/09/23/ai-boom-unsustainable-tech-spending-parabolic-deutsche-bank/
Pluralistic: The real (economic) AI apocalypse is nigh (27 Sep 2025) –
https://pluralistic.net/2025/09/27/econopocalypse/#subprime-intelligence
"This week, no less than the Wall Street Journal published a lengthy, well-reported story (by Eliot Brown and Robbie Whelan) on the catastrophic finances of AI companies: https://www.wsj.com/tech/ai/ai-bubble-building-spree-55ee6128 The WSJ writers compare the AI bubble to other bubbles [...], and conclude that the AI bubble is vastly larger than any other bubble in recent history."
Pluralistic: The real (economic) AI apocalypse is nigh (27 Sep 2025) –
https://pluralistic.net/2025/09/27/econopocalypse/#subprime-intelligence
"This week, no less than the Wall Street Journal published a lengthy, well-reported story (by Eliot Brown and Robbie Whelan) on the catastrophic finances of AI companies: https://www.wsj.com/tech/ai/ai-bubble-building-spree-55ee6128 The WSJ writers compare the AI bubble to other bubbles [...], and conclude that the AI bubble is vastly larger than any other bubble in recent history."
Yikes.
"a third of the stock market is tied up in seven AI companies that have no way to become profitable and that this is a bubble that's going to burst and take the whole economy with it?"
This is a good commentary that links to the article above: https://futurism.com/artificial-intelligence/deutsche-bank-grim-warning-ai-industry
The tl;dr is that the amount of money spent on capital expenditure (building server farms and chips) for AI has exploded, but it has not brought the concomitant revenue growth to make it sustainable. AI capex is now responsible for more GDP growth than “all of consumer spending combined.” To pay for this, the AI industry needs to generate more than $2T *annual* revenue by 2030, which is ludicrous. Sooner or later, the piper must get paid.
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