Read full text: https://www.oftwominds.com/blogjan25/AI-fad1-25.html?fullweb=1
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As I've noted before, when the tools and techniques are freely available to all, there's no scarcity value to any of it. And with no scarcity value--no value proposition so mighty that people will pay a premium for it--then profits are thin to zero.
The "smart money" has noted the AI fad has burned to the waterline, and has been frantically assuring "dumb money" that the stock market bubble is still intact and poised to bubble higher, so there's no reason to sell, and every reason to "buy the dip" so the "smart money" can sell, sell, sell near the top and let the "dumb money" absorb the coming 80% decline as a fad that was poorly conceived from the start has burned to the waterline, and the tiniest wave will send it to the bottom.
The "safe bet" was on heavily moated tech behemoths dumping billions of dollars into the "competitive advantage" of energy-ravenous processing power. That "safe bet" is now in Davy Jones' Locker. The reality that "AI has no revenues and no profits" is lingering above the burned-out hulk as a haze of doubt and confusion.
What's the next fad? Stay tuned. It might just be a retro revival of the time-tested fad for cost-cutting and "return to basics," starting with mass layoffs and slashing capex budgets.
