Is AI’s hype cycle leading us into a trough of disillusionment? Dive into the reality behind GPT-5’s launch and its impact on the tech world.
A recent MIT report on AI in business found that 95 percent of all generative-AI deployments in business settings generated “zero return.”
I remember when companies hung on to old technology for dear life as long as they possibly could. I’m pretty sure they were still making money then. Everyone hopping on these bandwagons and throwing tons of money at it for FOMO are bonkers, this stuff has barely been tested yet as far as productivity, effect on workers, mental health issues, the list goes on… but I guess that’s all fine.
its so stupid how the companies seem just incapable of doing reasonable things. Either they hung on to old stuff even if it causes more problems or they jump on to some new hype thing. World would be better place if people with no long-term planning capability couldnt get any real influence over anything.
We have an enormous part of the population retiring right now, some are voluntarily working right now and hanging on.
But these people will sell their stock en masse once they retire to buy something more stable like bonds.
The only way the stock market can keep them is to increase the yield so much that they get FOMO and don’t convert to bonds just yet.
This raises the stakes and winds up the stock market but now you have a HUGE portion of the population holding back a literal TSUNAMI of liquidation.
If the yield drops, if the apparent value slips, they will sell, the price will drop faster they will sell even more, this is how the next recession will happen, we just can’t say when.
When prices crash,the oligarchs will be there to gobble up everything of actual value.
In short AI valuations are holding back the next recession, and if they don’t deliver … it might be a depression and russification of the economy ?
They’re also crashing the stability of bonds