'It's going to be really bad': Fears over AI bubble bursting grow in Silicon Valley

[Bernardo de La Paz]

8. Nonsense. They do care. It's money. It's a lot of money.

They knew / know there is a risk of a bubble, but they feel they are in a mad scramble to avoid having their company left behind. To some extent they are right, they could easily be left behind. But yes, there are hucksters taking advantage and along for the ride.

I think the bubble has formed and is large enough that it could pop at any time now. However, it could go another year or more before popping. My best guess is sooner rather than later, because economic conditions and stock markets are depending on everything going just right. Labour is tight (low hire, low fire, and fewer migrants for workers on the low end). Earnings per share are at market top levels. There's a lot of business uncertainty and supply shocks (leads to stagflation).

One example that strikes me as frothy is Rick Perry's (yes, the politician) company Fermi which just went public in an IPO valuing it worth several billion dollars while it has no sales and few assets. It wants to build infrastructure for data centers and data center power.