A chief economist at investment giant Apollo says the top ten AI stocks are more detached from reality than the tech titans of the 1990s were. His chart is a stark warning that history is about to repeat itself.
The LLM hype is as big as it is only because of capital’s disdain for labour. None of these big AI conpanies have come close to turning a profit. They even have subscriptions now that cost $200 a month and they lose money on those too given that the user actually uses their service. But the promise of taking out of the equation the pesky labourer with silly demands like food and a house is too seductive for investors and this is the closest they have come so far to fulfilling their fantasy. So expect this to go on for a while.
The LLM hype is as big as it is only because of capital’s disdain for labour. None of these big AI conpanies have come close to turning a profit. They even have subscriptions now that cost $200 a month and they lose money on those too given that the user actually uses their service. But the promise of taking out of the equation the pesky labourer with silly demands like food and a house is too seductive for investors and this is the closest they have come so far to fulfilling their fantasy. So expect this to go on for a while.