"Last week, while touring one of OpenAI's mammoth data centers being built in Abilene, Texas, Altman had a pretty casual outlook when he was asked about a bubble that could financially decimate the entire industry. "Between the ten years we've already been operating and the many decades ahead of us, there will be booms and busts," Altman ruminated, as quoted by The Associated Press. "People will overinvest and lose money, and underinvest and lose a lot of revenue.""
""We'll make some dumb capital allocations," he conceded - but assured that "over the arc that we have to plan over, we are confident that this technology will drive a new wave of unprecedented economic growth." It's the kind of blasé, bromidic talk you'd expect to hear from a coach of a sports team that's on a historic losing streak. Oh yes, 'there'll be ups and downs' - and your eyes glaze over."
Casual warnings predict booms and busts across the coming decades, with cycles of overinvestment and underinvestment causing financial losses and missed revenue. Some capital allocations are expected to be poor, yet planning over a long arc anticipates unprecedented economic growth driven by this technology. Massive investment concentrations make the industry central to the global economy, with a half-trillion-dollar startup at the forefront of an AI gold rush. Recent data show AI-related capital expenditures contributed more to U.S. economic growth in recent quarters than consumer spending, implying that an AI bubble burst could have wide systemic consequences.
Read at Futurism
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