this post was submitted on 09 Oct 2026
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After the initial dot com boom and bust (remenber pets.com?) I remember being told laptops and desktops were dead and we'd all be using tablets. Metaverse, google glass, self driving vehicles real soon, theranos will transform health care, NFTs, crypto. And now AI. Its all just a repeating toilet bowl swirl of empty speculation, exactly like a casino. And not a single one of those things came to much. I wonder if AI will leave much progress behind when it implodes. Maybe this time itll be different?
Yeah, just like, after the Segway bubble burst, we're all riding them now.
The funniest part is that the dot com crash didn’t kill the internet. It killed a lot of terrible business plans. AI may follow the same script: useful tools survive, investors discover that a chatbot isn’t worth infinite money, and taxpayers get stuck with the data center power bill. The technology can be real while the valuation is pure casino. - PS: You didn’t mention the smartphone. And that’s exactly what people mainly use these days.
That's the thing about bubbles: it doesn't mean that the thing is useless, just that its value is inflated. We still have websites after the dotcom bubble burst, certainly we still have housing despite several bubbles bursting there. I would be surprised if LLMs go away entirely. OpenAI and Anthropic might not survive, but Google and Microsoft will continue. God only knows what will happen in China. Local models will still be OK. The broader concepts of machine learning, deep learning, big data etc have been useful for far longer than this bubble and will continue.
Exactly. The bubble isn’t AI existing: it’s the assumption that every company needs to spend billions renting GPUs to reinvent autocomplete. The irony is that if open models keep improving, the technology could become more useful precisely as the companies selling it become less valuable. Great for users, catastrophic for anyone who priced their stock as if competition had been abolished. - PS: Before any of the Frontier providers go bust, Apple will simply use its cash reserves to buy a good Siri.
The thing with this bubble is that it's all terrible business plans. We're 4 years in and no great leap. No productivity gain. No company that's been able to turn the tech into something that makes a profit.
Yes, the tech will survive but if nobody is prepared to pay the actual compute costs, it's going to get abandoned.
Exactly. And cheap open weight AI is the wildcard. If people can run capable OWAI locally for pennies, the trillion dollar moat starts looking like a very expensive puddle. AI could thrive while the companies betting on permanent scarcity discover they funded their own competition.
I'm not sure how much distillation and building on top of each others results is going on. I could see all the models freeze in development when the money leaves the segment.
A model frozen in the past has limited usefulness.
Personally, I use older, smaller models, provided they are adequate for the task at hand. My theory is that at least 80% of companies are using a sledgehammer to crack a nut. Not only is that incredibly expensive, but it’s also incredibly ignorant.
Tech Bros have been trying to repeat the Net Boom almost immediately after that bubble burst - I think it didn't take more than a couple of years after that Crash for the "Web 2.0" to start being paraded around like some kind of new gold rush that everybody should jump into and, as clearly visible in the list of hype techs you wrote, they just kept doubling down on the hype and the fraud ever since.
I actually was in Tech in the 90s and during the Crash, and then came back to that industry and into startups almost 2 decades later, and my feeling is that the point when the entire sector turned into nothing more than a giant grift was either a bit after the crash or, at best, just when the boom before it was peaking - I remember very clearly that in the 90s startups mostly started with somebody having a cool idea for tech, whilst in the 00s and onwards they mostly started with somebody having a business idea which was generally about setting oneself up as an intermediary in a kind of business transaction already done for decades, using the Internet and/or Smartphones to come up with a new twist for it and some way of becoming an aggregator/middle-man between both sides of the transaction.
the original dot com bubble never really got its reckoning because almost immediately after that there was 9/11 which shifted focus and then there was the whole economy collapse situation and by then it was ancient history nobody cared about.
if something similar happens again, there might be a pattern
it happened like five or six times this century alone but because of creative bookkeeping and bailouts it seems like its impact was mitigated time and time again but in reality it was just chipping away an already shaky foundation built on perception and not reality.
They were doing it before the net boom too. Roaring 20s, railway mania, Mississippi bubble, south sea bubble, and on and on.
I'm think just Tech here, or maybe more specifically digital technology - the period till 2000 was mainly driven by techies, after than it was mainly driven by grifters, generally with backgrounds like Finance or Marketing, not Technology.
Many people seem to still have the idea that Techies lead Tech Startups, but that hasn't been true for at least 2 decades.
I'm just saying it didn't start with tech, it started with capitalism
i blame sea peoples all the way back! these guys are assholes!
Sea people are more a backlash to states IMO
Capitalism creates the boom/bust pattern in the same way national borders create immigration crisis.
When you map reality onto a belief system it creates distortions.
i was sarcastic about sea peoples.
"The more things change, the more they stay the same"
I think pets.com is probably the best analogy to what will happen with this first round of AI companies. In hindsight pets.com's business model was fine and modern companies like chewy are doing the same thing successfully.
The problem was timing, internet adoption was low and most people didn't understand how to use the Internet or trust it. Combine that with a flood of speculative dollars that mostly gets funneled into marketing with no adoption to justify it and the business falls apart.
I think we'll see the same thing happen with some of these AI applications, the use case may be valid, but people, and the devs, won't know how to use AI and the people won't trust it so adoption will be low even with high marketing and the company will go bust. Then 10 years from now we'll make fun of that AI party planning app that went under while we all plan our parties through some new AI app.
AI IS a useful tool for some things, just not everything. So it ain't going away. Just as the "cloud" is still with us. Or email. Anyone remember when every ISP had their own email?
Every new idea goes through the process of catching on, stupid rapid growth, and then the weeding out of 90+ % of them, and finally the stabilizing the market for those that actually need and use it. Whether is cars, TVs, Cell phones, or AI, every hot new idea goes through this process.
its a useful tool in the way each car should have a nuclear reactor engine. cool idea but the execution is too resource heavy....
draining lakes for cat videos is NOT the future u dunderpate
The juice isn't worth the squeeze
So, the AI the doctors use to help scan for cancers should be stopped. Gotcha.
Fool of a Took.....
That is a very specific use case, its used way more often to make child porn.
So you admit that AI is a useful tool for some needs.
you act like the process doesn't cause cancer...
but go ahead and immerse yourself in fantasy...
What part of using AI to diagnose of cancer causes cancer?
🤔 what's the logic here?
I think it will, it's the one bit of AI optimism I actually have. I have a theory the big AI firms love for example Yudkowsky's doomsday cult so much because it's easier for them to imagine the end of humanity than it is to imagine them not getting an extractive oligopoly over an emerging technology.
The tech itself is actually decent as tech, it's not what the boosters claim it is but even if development stopped advancing today there's loads of niches it'd be changing for a long time; computer vision in medical settings for example. Useful things like TTS will be much better going forward than they ever were, and for better and worse things like computer vision in general (ie in public) will never be the same. LLMs are basically magic NLP boxes too, they're useful for classification as much as generating slop.
My own opinion is that Ai is the greatest threat to capitalism since Karl Marx and nobody has caught on to it yet.
The idea of top down control of this technology- eg a single or a few companies holding the rinse and selling it to everyone else - has been quickly proven to be a fantasy.
I think it's what both the fuck ai crowd and the Ai bros are missing with the whole situation. No one makes money with Ai (except the people that make the hardware it runs on). Not the people who used to do the things it does, not the people who want to control and sell it.
It seems highly unlikely to me because AI requires massive amounts of capitalism to work, from the mass production of chips to the mass aggregation of knowledge in digital form.
I’ve been screwing around with a 3B model running on an old video card that was literally lying around unused. Clearly there are a metric ton of dollars being thrown at AI but after the bubble pops there will be a lot of people still digging hard on this.
Well yeah, that old video card wasn't built by hand at a socialist commune. It was mass produced in a capitalist factory.
It's definitely an interesting point of view I think, and definitely one worth taking seriously.
One thing it might be really cool for is implementing cybernetic ideas, which would be ironic as the term AI was originally coined to move away from cybernetics! I think cybernetics could well be the weapon of choice for a serious socialist challenge to capitalist norms, I don't think anyone sane wants to bring Gosplan back from the dead for example (it was a good example of very constrained and unreliable information flow) but cybernetics is a serious answer to the neoliberal argument that only prices carry the necessary economic information to operate a modern economy.
The cyberneticist would argue that there are much richer data available and we should build systems which take it into account, and allow for more sophisticated goals than 'more billionaires' to be deliberately aimed towards. It can also be used to do away to some extent with all-powerful centralised bureaucracies (and the inevitable bureaucratic class which forms around them) because decentralisation is a key component of cybernetic ideas.
or any sociologist since then.
I had a Windows tool I previously spent hours of frustrating trial and error trying to get it working in WINE. Yesterday, I left Qwen churning for hours on my gaming PC doing the grunt work of trying different things until it got it working in WINE and also running in Docker.
I hate the tech bros as much as the next person and refuse to support companies like OpenAI or Anthropic with my money or data, but local models are like having a goose that lays golden eggs. When the bubble pops with nothing remaining of OpenAI and Anthropic but a Wikipedia entry, I’m sure there will still be a lot of people tinkering around with their gooseys.
Netbooks and thin computing too.
Nope, all hype and fizzle.
Turns out people want to own their personal hardware/software tools and data, without some perverts reading and observing their family interactions.
I loved netbooks… but I think I was the only one.
I want a convertible, a laptop that folds all the way back and gives a tablet/stylus interface, but has stiff enough hinges to hold the screen like a laptop at any angle with a keyboard, and that closes and covers the screen like a laptop. They played around with some form factors like that 10 years ago but they never really took off. Plus they tended to be Windows only, with poor Linux support on the hardware.
The tablet one eventually came true. Desktops and laptops aren't anywhere near as popular for personal use by non-technical people.
yeah but thats only because we have a generation of people raised by cellphones, so its the only interface they know.
Whatever the reason, it's basically become true.
I hope you are right .
But i just read and article suggesting that new university students "cant imagine " writing a 5 page paper without AI chatbots...
Yes this time it will be different, please purchase ETFs with names like "AI, Metaverse and Blockchain" (they actually exist)
/s
Technology investment bubbles have existed since at least the industrial revolution kicked off. Tons of airlines went bankrupt in the early days of air travel, for example. I don't know anything about it but I assume the same thing happened with trains and a gazillion other technologies that actually are pretty cool.
Marx pointed out that capitalism needs periodic cycles of capital destruction, and here we are...
https://en.wikipedia.org/wiki/Railway_Mania