looking at the recent earnings and the sheer amount of CapEx big tech is dumping into scaling LLMs is making me nervous. pouring hundreds of billions into probabilistic models that basically just guess the next word is a wild bet when enterprise clients need 100% accuracy. you cant run a power grid or logistics network on a model that might hallucinate because of a weird prompt
was checking out the speaker notes for the Milken Conference to see what the institutional guys are focusing on right now. its pretty telling that the ASML and Google execs are doing a panel with Logical Intelligence entirely focused on deterministic AI (the brief is here https://logicalintelligence.com/milken). seems like the smart money is quietly pivoting
if the industry is already moving toward architectures that understand actual mathematical constraints and logic, then pricing in a permanent monopoly for current generative AI infrastructure feels like a mistake. The real b2b money is going to flow into systems that physically cannot hallucinate. just feels like retail is blindly chasing the LLM trade while the actual builders are already looking for the off-ramp.
the massive LLM CapEx burn is starting to feel like a trap
byu/Cjd03032001 ininvesting
Posted by Cjd03032001
7 Comments
The real question isn’t whether AI is useful. It clearly is.
The question is whether current valuations already assume near-perfect monetization of hundreds of billions in AI spending. History shows new technologies can change the world and still produce bubbles at the same time.
Sell sell sell
Have you talked to Indian call centres? You honestly think they need 100% accuracy? You must have amazing customer service from every company you deal with.
From my understanding, LLMs aren’t really meant to be perfect truth machines but more like productivity tools that assist humans. I think the real value might be in how they’re integrated into workflows, not just standalone accuracy fr…
Nobody will let AI to control system that controls exact variables, such as electricity distribution, refinery, manufacturing. There will be always people involved for the foreseeable future.
What people are missing is the current AI can make proper, non-critical decisions, such as stay on the feet, don’t crash into things, adjust grabbing pressure when boxes are getting damaged, etc. Menial work will be done by robots powered by AI. All of the owners are salivating over this. Less workers, less trouble with unions, less safety, works 24/7.
I see “retail” investors doomposting on investing subs at LEAST every other day, yet ppl still insist that there’s a top or some super sneaky market force that apparently no one has thought of besides some random, novice-investor Redditor. And I have a hard time believing this conspiracy that somehow retail is blindly chasing ANY trade and propping it up on their own. I doubt retail even has the purchasing power to compete with institutions, mega firms / corporations, and entire sovereign nations.
Investing is not about vibes and feelings