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SanAndreasX 2 days ago
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Ryuu96 said:

The issue is a company managing to create an AI model which is just as good, or simply good enough, when compared to the competition, at a fraction of the cost and resources, so why are people like Sam Altman asking for 100s of billions of dollars? US companies have been leading the AI battle and that has been driving their valuations, now investors will wonder just how far these companies really are in the lead, with tens of billions being spent with zero profits in return for years on end.

Of course AI won't die but it shows a little fragility in the US companies hold on the AI market and this after all the song and dance about $500bn being invested into AI by US Companies whilst OpenAI loses $5bn+ per year. OpenAI is just one AI company though, but it is the most well known and Sam Altman comes across as a massive con artist and I do not believe OpenAI will be the one to make the breakthroughs and the problem is, a lot of companies are hedging a lot on OpenAI.

Nvidia is down 16% now, I'm sure it will rebound but there's fragility being shown for US companies.

Nvidia Stock Plunges 15% As NVDA Heads To Biggest Market Cap Loss Ever

This is basically what the Chinese team did if their claims are accurate, Lol. China also had US sanctions on them which was meant to weaken their ability to do this. It appears as though US companies are running extremely expensive models and at risk at being beaten out by more competitive inexpensive models. OpenAI, if these claims are accurate will need to sort themselves out and become far more cost efficient.

Broadcom Inc down 18%.

This is another example of how many in the U.S. are still stuck in the 1950s. They don't get that they have international competition. They think they still live in a world where Europe and Asia are still in ruins from WWII. That's how Japan was able to eat the lunch of U.S. industries in the 1970s and 1980s. At several points before the lost decade, Japan was on the cusp of becoming the largest econony on Earth, something that modern-era China has yet to accomplish. That's part of why Reagan made them sign the Plaza Accord.

@Ryuu96 I followed you on BlueSky.