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this post was submitted on 04 Sep 2024
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Not a stock market person or anything at all ... but NVIDIA's stock has been oscillating since July and has been falling for about a 2 weeks (see Yahoo finance).
What are the chances that this is the investors getting cold feet about the AI hype? There were open reports from some major banks/investors about a month or so ago raising questions about the business models (right?). I've seen a business/analysis report on AI, despite trying to trumpet it, actually contain data on growing uncertainties about its capability from those actually trying to implement, deploy and us it.
I'd wager that the situation right now is full a lot of tension with plenty of conflicting opinions from different groups of people, almost none of which actually knowing much about generative-AI/LLMs and all having different and competing stakes and interests.
"What are the chances..."
Approximately 100%.
That doesn't mean that the slide will absolutely continue. There may be some fresh injection of hype that will push investor confidence back up, but right now the wind is definitely going out of the sails.
The core issue, as the Goldman - Sachs report notes, is that AI is currently being valued as a trillion dollar industry, but it has not remotely demonstrated the ability to solve a trillion dollar problem.
No one selling AI tools is able to demonstrate with confidence that they can be made reliable enough, or cheap enough, to truly replace the human element, and without that they will only ever be fun curiosities.
And that "cheap enough" part is critical. It is not only that GenAI is deeply unreliable, but also that it costs a truly staggering amount of money to operate (OpenAI are burning something like $10 billion a year). What's the point in replacing an employee you pay $10 an hour to handle customer service issues with a bot that costs $5 for every reply it generates?
Yea, the "cheaper than droids" line in Andor feels strangely prescient ATM.