If the AI business is this dependent on having zero regulation then I think its even shakier than most people realize (and I get that many people have already been worried).
I’ll be interested to see what regulation, if any, really comes from this though
Not just zero regulation: open corruption and legalized white-collar crime. If AI was a bubble, it was always going to pop if anyone anywhere in the nation faced consequences for a high-profile corruption scandal.
Yep, AI was an excuse by Wall Street to capture Silicon Valley. There is a reason why Wall Street hated Steve Jobs, because he wouldn’t reveal anything to them and was always against them
I think it's more the case that everyone knew the stocks were overvalued. Same way everyone knew subprime loans were dangerous. It's been a game of hot potato for the past two years where no one wanted to be the first to sell. The election was just the moment they chose to come back to reality a bit.
If even a whiff of potential regulation causes this much market panic, then it explains exactly why AI was launched to the public when it did a few years ago.
I don't think it is the threat of regulation. It was widely expected that the Dems would take the House. They still can't pass any legislation due to Trump's veto power. A different possibility were the results of data center ballot initiatives. It was something like 41 out of 43 passed (to stop or restrict data centers).
it was dependent on people buying into the bubble on hope of yet more bubble. Once fear overcame greed everyone piled for the exits - the mid-terms/regulation concerns were just a trigger, it could have been anything.
Antropic and OpenAI publicly said they wanted a freeze on AI superintelligence and want sweeping government regulations in order to maintain safety. Sam Altman said it a month ago too.
Of course other AI companies claim that these companies want to freeze it while they are "ahead". Take it what you may, there is a desperate need for regulation.
Yup. They see an opportunity to use regulation to muscle out upstarts and bend the rules in their own favor. Nobody finds $50 billion on the floor of an taxi. If Anthropic and OpenAI do something, it's because the owners think they can get even richer by doing it.
With the pace of development, there is a very real risk of a race to the bottom. I'm sure the big players also see regulation as a way to build a moat against disruptive startups.
It will be a race to the bottom and these companies will be doing everything in their power to try to scrape what meager profit they can from their huge capital expenditures.
These types of bubbles have happened in tech multiple times and the big players are trying to gain a monopoly over something that will continue to become cheaper and more powerful.
The best thing about AI is there is no need to be loyal. As long as you control your own data properly, you can go to a different model quite easily and get the results you need.
I’m a policy economist in DC and the most I expect would be state level regulation. I think federal surveillance pricing regulation will be the first AI related bills passed
It’s not like they took $1 trillion out of their cash reserves and then flushed it down the toilet. It’s an equity valuation, it’s just what a critical mass of dummies think the company is worth. They big scared of Democrat
Also lets just take a moment to remember how the stock market was popping champagne bottles when Trump won the election but once he actually got into power and implemented his policies there was a giant crash.
The markets always expect right wingers to be great for the economy and left wingers to be bad for it even though the evidence doesn't support this belief at all.
Also most of these companies aren’t even back to values they were seeing over the summer, these sorts of headlines exist to stoke emotion in people who aren’t paying attention to anything.
Cnbc... Lol they keep reporting valuations as some real money, which is how the rich got richer....fake valuations and stock prices they levarage against bank loans... Perhaps when we stop valuating the economy based on bullshit metrics we can fix things around the world... Lol
>Lol they keep reporting valuations as some real money, which is how the rich got richer... Perhaps when we stop valuating the economy based on bullshit metrics..."
But, how are we going to "tax the rich" if they're no longer (that) rich? All that lost wealth that could have been taxed...it is almost enough to make a socialist cry. </s>
It’s not even that, the Mag 7 combined had a market cap of around 24T. This is a sub 5% dip, but big numbers scary to people who don’t look at markets.
Ghostrider556 | 11 hours ago
If the AI business is this dependent on having zero regulation then I think its even shakier than most people realize (and I get that many people have already been worried).
I’ll be interested to see what regulation, if any, really comes from this though
Gamer_Grease | 7 hours ago
Not just zero regulation: open corruption and legalized white-collar crime. If AI was a bubble, it was always going to pop if anyone anywhere in the nation faced consequences for a high-profile corruption scandal.
DisneyPandora | 6 hours ago
Yep, AI was an excuse by Wall Street to capture Silicon Valley. There is a reason why Wall Street hated Steve Jobs, because he wouldn’t reveal anything to them and was always against them
handsoapdispenser | 2 hours ago
I think it's more the case that everyone knew the stocks were overvalued. Same way everyone knew subprime loans were dangerous. It's been a game of hot potato for the past two years where no one wanted to be the first to sell. The election was just the moment they chose to come back to reality a bit.
Magificent_Gradient | 3 hours ago
If even a whiff of potential regulation causes this much market panic, then it explains exactly why AI was launched to the public when it did a few years ago.
css555 | 3 hours ago
I don't think it is the threat of regulation. It was widely expected that the Dems would take the House. They still can't pass any legislation due to Trump's veto power. A different possibility were the results of data center ballot initiatives. It was something like 41 out of 43 passed (to stop or restrict data centers).
Magificent_Gradient | 3 hours ago
Yes, data centers on the ballot is part of that regulation.
some_where_else | 6 hours ago
it was dependent on people buying into the bubble on hope of yet more bubble. Once fear overcame greed everyone piled for the exits - the mid-terms/regulation concerns were just a trigger, it could have been anything.
PrinnyFriend | 9 hours ago
Antropic and OpenAI publicly said they wanted a freeze on AI superintelligence and want sweeping government regulations in order to maintain safety. Sam Altman said it a month ago too.
Of course other AI companies claim that these companies want to freeze it while they are "ahead". Take it what you may, there is a desperate need for regulation.
PegyBundy | 4 hours ago
Thats only because they were first and had a seat at the table to define those regulations. All of their competitors were going to be on the menu.
They werent propsing this because they were being good people. They were trying to prevent competition.
shiningdickhalloran | 4 hours ago
Yup. They see an opportunity to use regulation to muscle out upstarts and bend the rules in their own favor. Nobody finds $50 billion on the floor of an taxi. If Anthropic and OpenAI do something, it's because the owners think they can get even richer by doing it.
eetsumkaus | 7 hours ago
With the pace of development, there is a very real risk of a race to the bottom. I'm sure the big players also see regulation as a way to build a moat against disruptive startups.
thened | 4 hours ago
It will be a race to the bottom and these companies will be doing everything in their power to try to scrape what meager profit they can from their huge capital expenditures.
These types of bubbles have happened in tech multiple times and the big players are trying to gain a monopoly over something that will continue to become cheaper and more powerful.
The best thing about AI is there is no need to be loyal. As long as you control your own data properly, you can go to a different model quite easily and get the results you need.
Big_Condition477 | 3 hours ago
I’m a policy economist in DC and the most I expect would be state level regulation. I think federal surveillance pricing regulation will be the first AI related bills passed
Global_Rate3281 | 12 hours ago
It’s not like they took $1 trillion out of their cash reserves and then flushed it down the toilet. It’s an equity valuation, it’s just what a critical mass of dummies think the company is worth. They big scared of Democrat
fryxharry | 6 hours ago
Also lets just take a moment to remember how the stock market was popping champagne bottles when Trump won the election but once he actually got into power and implemented his policies there was a giant crash. The markets always expect right wingers to be great for the economy and left wingers to be bad for it even though the evidence doesn't support this belief at all.
RIP_Soulja_Slim | 2 hours ago
Markets tend to rally after elections regardless of party, it’s certainty not preference.
OddlyFactual1512 | 10 hours ago
>They big scared of ~~Democrat~~ common sense regulation.
eptesicusfuscus | 3 hours ago
Ahh yes...common sense...the thing that's always right and doesn't bear further scrutiny.
mistressbitcoin | 8 hours ago
Oh... I thought all of that trillion dollars was stolen from the lower classes, and that it just went back to them?
Magificent_Gradient | 3 hours ago
It’s vapor until the next bull run.
juice06870 | 12 hours ago
It will bounce back tomorrow or by next week. Let’s all calm down.
Words words words words words. Pluto is still a planet. Pizza is a vegetable
RIP_Soulja_Slim | 2 hours ago
Also most of these companies aren’t even back to values they were seeing over the summer, these sorts of headlines exist to stoke emotion in people who aren’t paying attention to anything.
Osiris_Raphious | 8 hours ago
Cnbc... Lol they keep reporting valuations as some real money, which is how the rich got richer....fake valuations and stock prices they levarage against bank loans... Perhaps when we stop valuating the economy based on bullshit metrics we can fix things around the world... Lol
Lipdorne | 2 hours ago
>Lol they keep reporting valuations as some real money, which is how the rich got richer... Perhaps when we stop valuating the economy based on bullshit metrics..."
But, how are we going to "tax the rich" if they're no longer (that) rich? All that lost wealth that could have been taxed...it is almost enough to make a socialist cry. </s>
Osiris_Raphious | 2 hours ago
Just print more money, seems to work our for the banks and every single too big to fail buissness that has failed...
Ok_Definition_1933 | 3 hours ago
I think the even more mind blowing thing is that this was probably just a correction, not a crash... Yet.
The bubbles size has grown to astronomical size.
RIP_Soulja_Slim | 2 hours ago
It’s not even that, the Mag 7 combined had a market cap of around 24T. This is a sub 5% dip, but big numbers scary to people who don’t look at markets.