Is the AI Bubble Getting Crazy? Here's a Quick Explanation of Why It's Being Called 'Worse Than Subprime' 💡

I often hear people saying "AI is amazing!" but I was shocked to learn that recently, the 'AI bubble' has been inflating so much that some are saying it might be even more dangerous than the old subprime loan problem 😳💭

But first, what even is subprime lending? And what's this AI bubble all about? Let me give you a quick explanation ✨

Here's What the Subprime Loan Crisis Was Like 👀

Back in the day (around 2008), there was an incident in the US where the number of people who couldn't repay their housing loans suddenly increased, and financial institutions started getting into serious trouble. This is what's called the "subprime loan crisis," and it had a huge impact on the global economy 💥

Simply put, it was like "We lent money but it's not coming back!" happening on a massive scale, and things got really bad ✨

So What's So Dangerous About the AI Bubble?

Right now, tons of money is pouring into AI-related companies and technologies, but it's said that their value is inflated way beyond their actual substance = it's becoming a bubble 💭💡

There's definitely potential in AI, but
Expectations are running too far ahead, and
There's concern that reality might not be catching up? That's the feeling 🥺

What Does "Worse Than Subprime" Mean?

Basically, it means we might be about to repeat that financial crisis-level disaster. This time it's not housing loans, but AI-related investments that are becoming a bubble, and if it bursts, the impact could be huge? That's what experts are warning about 💥😳

Why Is It Inflating So Much?

AI is evolving at an amazing speed and it's exciting 🎉
Investors and companies are saying "This is the key to the future!" and pouring insane amounts of money into it 💸
But realistically, in many cases, profit-generating business models haven't been established yet ✨

When these factors combine, the value becomes unstable and that's scary... 🤔💭

What Should We Do? Points to Be Careful About ✨

Take your time and check information properly 📚
Don't jump in based on expectations alone, develop the eye to properly assess the substance 👀
Having the courage to stop when you think "Hmm, this seems suspicious?" is also important 🥺

Anyway, AI will continue to enter our lives more and more, but I think the message is when it comes to investments and money, stay calm! 💭✨

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Whoa! It might be this serious 😳

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Comments

リリー

The AI industry is in a major bubble, and warnings are sounding that it could plunge the global economy into a severe recession.

グレース

This can't be simply compared, it's a different market and the financial issues are different too.

クロエ

I understand how the economy works, but how exactly can you make huge profits from AI failures?

ハンナ

I think failures by Microsoft and Google are completely different from the subprime crisis.

レオ

Just build one more data center and the feeling that AI is all hype should disappear, please just build it.

ジョージ

The meaningless proliferation of money continues like: 'How much?' '600 billion dollars' 'What about Tim?' 'Also 600 billion' 'Jeff too?' '600 billion'.

サム

No bailouts this time would be fine, if they fail they should go under. If they need bailouts, they should be nationalized.

クリス

Remember when major companies announced half-trillion dollar investments at the beginning of the year? Everyone's forgotten about that.

ハンナ

Companies forcing AI on consumers is proof it hasn't really caught on, right?

ノーラン

They're probably trying to force customers to use it even if they don't want to, to justify their expenses.

ノーラン

If it takes a global financial collapse to shut up the AI talk, then so be it.

ロバート

This is a rich person's problem, I'm using AI for $20 a month.

グレース

The comparison in this article is nonsense. Subprime involved complex financial products and the scale is completely different.

クリス

Many middle-class people invested in housing, but only big corporations are investing in AI.

リリー

If companies go under from AI investments, it's just deserts. The upper management will be fine while the middle-class workers on the ground take the hit.