this post was submitted on 05 Nov 2025
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The investor who bet against the US housing market in the run-up to the 2007 financial crisis has now placed a significant wager on the collapse of the artificial intelligence (AI) boom.

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[โ€“] bennieandthez@lemmygrad.ml 1 points 9 hours ago (1 children)

What could realistically pop the bubble? Afaik, it's a bubble because everyone is buying buying AI stocks, the goverment and every investment fund including pension funds are invested on it. How does this ever burst if theyre all in on this? Could the withdrawal of an investment fund with a large % of ownership cause a snowball and pop the bubble?

[โ€“] fishy@lemmy.today 2 points 6 hours ago

If there's no profit being made companies won't keep spending. A large part of this bubble are the plans tech companies have to build out more AI. If these companies blink and reduce their plans it will begin the selloff. They're still all in on forcing AI down your throat, because they need you to be used to using it so they can start charging you a monthly subscription.