The AI bubble could be bursting
There's probably a "I told you so" somewhere
If the guy behind the Big Short is betting against Nvidia, it’s probably a big flag for the AI bros. After all, there are already reports that AI isn’t actually as good as businesses think for replacing actual human jobs.
Factor in an MIT study that says 95% of companies that invest in Gen AI have yet to see returns, and it’s likely a recipe for disaster. Just like the crypto craze, AI has yet to prove its value. It’s not a magical solution that can do anything.
Sure, it can chat with you, come up with answers, create pictures, realistic videos, and more, but can it really replace an actual person when half the time it’s likely to go off the rails and offer you terrible results?
No, it can’t, and investors are also starting to realise that the huge investments solicited by companies like OpenAI would require a tremendous upside to be worth it. But at the same time, many investors likely have too much at stake now, and will want to make sure that the bubble continues to expand. Otherwise, their investments will likely, well, pop.
Then there’s the fact that there are a lot of circular deals happening, where chipmakers like Nvidia are investing in the AI companies they supply, who then buy the chips from Nvidia. It’s not a good sign, because that’s exactly what happened with the dot-com bust. But some analysts are a bit more optimistic, calling it just normal vendor financing.
However, if AI doesn’t prove its value anytime soon despite sucking up so much resources, we’re likely to see a new dot-com bust in the next year or two. But that’s just a guess, it could end up either way if AI finally makes sense.
Don’t get me wrong, it’s a great technology, but it’s nowhere near the miracle worker it’s claimed to be. It reminds me so much of just how hyped crypto was. At one point, it was said to be the next big thing by revolutionising payments and finance, or how it will be the saviour of art.
That hasn’t happened yet, and it’s likely AI will slowly dwindle down to a few key players that can offer something tangible. But don’t bet on it, and please, stop using it to get answers for everything. Do Google searches or research the answers yourself, before you lose all sense of critical thinking.
This week, we tried Logitech’s premium productivity mouse, a novice-friendly drone from DJI, and a different take on the ThinkPad series from Lenovo.
The best productivity mouse finally gets updated in the form of the Logitech MX Master 4, offering improvements such as a wider thumb rest, haptic effects, and an extra button that works with gesture effects. There’s also a new Action Ring feature that lets you perform tasks such as take a screenshot or open up an AI chat, depending on the context. More importantly, the mouse feels comfortable, especially with the addition of haptics. This premium work mouse won’t let you down.
The new DJI Neo 2 is the ideal drone for beginners. It’s light at 151g, and can be controlled using a variety of palm gestures. It also has several features to prevent novices from damaging the drone, from propeller guards to Lidar to infrared sensors. Battery life, though, is short at around 10 minutes or so. You’ll want to get some extra batteries.
Is a ThinkPad still a ThinkPad if it lacks the iconic red trackpoint? The new ThinkPad X9 14 departs from the usual formula with a haptic touchpad, a different keyboard in an entirely new chassis. But it offers an excellent OLED screen, solid performance, and the lid can still be opened 180 degrees to lie flat.