This AI bubble is rapidly accelerating and it will take the entire market (and global economy) down with it. And while Sam Altman didn't singlehandedly ignite the new silicon arms race, OpenAI (and ChatGPT) did usher in the era we are now living in.
Much was said about Nvidia overtaking Microsoft today to become the world's most valuable company, but take a look at the top 3:
They are ALL beneficiaries of partnerships with OpenAI. Microsoft added a trillion dollars of market cap since partnering with them last year and Apple hit new all time highs after their announcement that ChatGPT will power "Apple Intelligence". And Nvidia? Well, they were just a $300 billion dollar video game card maker 5 years ago and now they are the biggest company on earth because their cards train AI models.
I'm just flabbergasted at how quickly and thoroughly the promises made by one small startup has become the economic backbone of the entire stock market. The bubble popping for this hype cycle will be one for the ages.
I don't know anything about anything but I'm pretty sure it's not a good time to invest regardless. Hedge fund ghouls will know the bubble's bound to pop ahead of time so shorting this when AI hype starts to die down probably won't work, and actually investing in Microsoft or whatever hoping you can cash out before people realize it's nonsense is also incredibly risky for the same reason.
Not to mention the possibility that AI isn't like crypto and it actually is here to stay. Obviously another 4 trillion parameters aren't gonna get Chat GPT to stop telling people to replace pizza sauce with glue, but there's a legitimate chance that tech goes along and pretends this garbage works. That's just how it is now.