So, I just read Ed Zitron long post on AI bubble, backed by hard sources and digits and it's a masterpiece.
It's long, but there's so many things in it:
- a 4th stage of
@pluralisticCory Doctorow enshittification where VC are the turkey being roasted, companies manipulating stock price to drain them, - and so the vanishing of available liquidity for VC,
- the fact that there's only 2 buyers of GPU-backed datacentres appart hyperscalers, none of which able to pay for them,
- datacenter that ate unlikely to be built on time or budget, because the projects are insane,
- datacenters obsoletes before even being built, built on a ever increasing debt based funding,
- starting to makes banks very uncomfortable,
- and that nobody has a path towards profitability in the whole chain of AI providers,
- apart NVIDIA which is massively lying about a lot of things and manipulating the stock price in diverse ways,
- and that there doesn't seem to be an analyst worth his bullshit in peanuts and able to even ask "how the physical world accommodates to your insane projected numbers?" "In what timeline?"
This is going to be a massive, fucking collapse with very real ripples up to the very real public banks having put tens of billions in that scam.
And so I think that there's a 5th stage of enshittification : the one where states are enshitified, being used as collateral of last resort, socializing the risk and greed of parasites, holding the bezel for even longer because if it fails, the country collapse.
