Economics degrees are astrology for white men. This only reinforces that point.
this post was submitted on 26 Oct 2026
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As someone with an economics-heavy business degree, I have said this since my intro to economics course. The fact that there are "schools", and that some mainstream theories last only for years, not even decades, and that all governments who come in will "try" a "recipe" to see what works, is telling enough. The "laws" of economics are "kinda", "usually", "generally", and above all "conditional". There are a few things that are almost laws, like the fact that humanity is driven by the seven cardinal sins of which most can be translated into economic characteristics, and cycles (which we are hell bent in forgetting every time we are at a crest).
I'm thermodynamic's bitch. That shit is. You can't cheat them laws.
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Shit's gonna pump then dump like you've never seen before.
How did they justify that valuation? All i could find in the article is what they EXPECT AI to do and they have a "rapidly growing customer base"?
Nothing about how they plan on providing $1.5t of value, just "its AI its gonna cure cancer do you wanna get left behind?!?"
Maybe a combination of cocaine and dice.
Look up project Stargate, follow the money, it wont take much digging to figure out the why and the who.
I get it. I found an old rock in a ditch that has a unique shape that I like. I value it at around 150 million dollars. BOOM! Economy solved!
So the investors want to get rid of the risks in their books. Hopefully they find enough MAGAs to sell the shit to.
Anyone with a retirement plan will be exposed to this as well.
All of us will be exposed to it if you have etf’s or a target market fund invested
Mannnn this is going to be one hell of a test
The headlines have finally started turning and calling it what it is: a bubble economy about to burst.
They've finally started saying "these companies are overvalued with no real strategy or profitability, and the receipts are about to come due."
So what do the tech companies do in response? "Quick! Pump and dump! Pump and dump!"
It's a fucking ponzi scheme. How have we not learned this yet as a society?
I wonder who will be stupid enough to buy this burning stock. With the value based on fantasy, the gargantuan losses being real, the tangible value being close to zero (most of them don't even own the data centers, they lease them) and a product that will probably never achieve what they promise, they will need a special kind of customer. Maybe they should do mailings to the people who bought Trumps' crypto coins...
You'd think the people whose jobs it is to understand that would see through it. But if they're approved for the IPO, then I think some funds will be forced by policy to buy
Investors want their Return Of Investment. If they can't get it via token prices, they'll need to sell their shares.
Yes keep inflating that bubble
I am gonna list me. 2.8 trillion.
Convince us. How many billions of dollars did you lose last quarter?
I'm sad to announce I cannot list me with a trillion dollar valuation, I haven't lost even a single billion dollars this quarter.
Yuck
We believe AI is one of the most consequential technologies in human history
HAH
Sooner or later a Greater Depression will come. Hopefully I will have sold my old PC, ditched my debt, and saved up enough Euros or Yuan to buy myself some Blackwell GPUs.
AI is the future. Anthropic is a dinosaur, doomed to become a historical curiosity.
I really don't get the "AI is the future" thing. Future of what? Any of the things it's capable of doing I would rather do myself, and the things it's not capable of doing are the things I consider most valuable.
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We have the best depressions over here. Depressions like you've never seen.
Their revenue in the first half of the year was 16.3 billion. That is a big increase over the 1.2 billion over the same period last year, but assuming that continues, then their annual revenue is only 32.6 billion. That is revenue. Not profit. They actually still operate at a loss, 693 million in the same period this year. That is a major improvement over the 2.1 billion dollar operating loss from the same period the year before. The trend line is going up. But the fact of the matter is that they are still very much operating in the red and their current investors are not getting and payoff for their investment until they are profitable.
They cannot generate a profit without either cutting on hardware and infrastructure investment, making their models more compute efficient/limiting the use of less efficient models, or increasing token prices. They will definitely not do either of the first two things, so prices are going to spike as soon as they go public so they can attract more investors. That is my prediction. The current investors will also sell out their shares immediately and dump the stock price screwing over all of the early adopters. Mark my words.
Gets even murkier when you look at how OpenAI did guarantee a certain % to pre-IPO investors.
These cretins all practiced their bullshittery in the crypto space and are now shoving it down the market's throat via "real" IPOs
I don't think a price spike will work either, the market has already priced LLMs at their cap, any higher and it's cheaper to just hire more humans.
The problem with throwing in so hard with AI tools and using it to replace human labor is that when you inevitably decide that human labor is the cheaper option in the long term, it takes a lot of time and effort to find, and train and rebuild knowledge and specific skill. In the meantime, you are still relying on AI to fill the gaps. They were able to drop people fast and hard. They won't be able to do the same with AI becuase people require more time to source and acclimate.
That means that, over the short term at least, these AI companies have a lot of industry by the balls. If they want to increase prices, even if that is the straw that breaks the camels back and gets them to start turning back to human labor, they are still going to pay those higher prices until they can.
That is not a recipe for a healthy long term business strategy for the AI companies. That will almost certianly lose them revenue in the long run, even with higher pricing. But if your investors are getting desperate for any return at all on their investment, a good solid pump and dump strategy makes that happen. They bail out before the other foot drops, collect their ill-gotten winnings, and walk away richer while the new shareholders eat shit when the price tanks.
The AI companies know this is a bubble just like everyone else. But bubbles are profitable to a select few if they do it right and that is all they ultimately care about. When the bubble pops, we'll still have AI companies, but the market will settle somewhere far more reasonable and the tools will be expensive and niche and useful for special cases only. No AI company is trying to get to that point, it's the just inevitable outcome. What they are trying to do is maximize their big payout, all else be damned.
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