The Over-Build Narrative: Big Tech is recklessly overspending on CapEx, creating an AI bubble that will pop and lead to massive losses & write-downs.
The Disruption Narrative: AI is powerful enough to disrupt the entire SaaS business model (Salesforce, Adobe, etc.).
These can't both be true at the same time.
There are two main narratives right now. Both can't true at the same time.
byu/LargeDan instocks
Posted by LargeDan
4 Comments
you need some Hegel in your life
the synthesis is that AI becomes cheap as fuck as chips become exponentially more efficient
and tadaaaa, the contradiction is solved
The latter is true… except these software companies will also need to incorporate AI into their products. Either way, the semiconductor industry benefits.
They could overspend on creating something that’s nowhere near as profitable as current software. Like I’m over here wondering why Google is pushing Gemini so hard when they don’t get the ad revenue and whatever else search gets. Like how is me getting a straight answer without going to websites profitable to them at all?
I imagine it’s the same for the other stuff. Like how is AI going to be more profitable than any of the stuff it’s replacing when it costs so much, and people don’t got enough money to pay for it.
People are confused which is why there’s so much volatility and an overall flat market last few months