Re:I'm Not Convinced the AI Bubble Exists
by adityaathalye on Monday November 09, 2026 @12:55PM
(#50428967)
Actually, that happened... horseless carriage company stocks are dogwater, and have been for decades.
Indeed, the entire car business first boomed, and then has continued to exist only because oil is massively subsidized. If they suddenly started pricing in the fully-loaded cost of oil into retail prices, the cheapest way to own an all-electric (forget IC engine) would be to drive it home from the shop, park it in the driveway, and set it on fire.
Come to think of it, Happenings in Hormuz is doing some of that to everyone now.
Detroit is not the city of dreams it used to be. Hasn't been for a long time.
Datacenter subsidies will burn out faster. What will remain is industrial capacity to manufacture really _really_ fast computers, at a huge enough volume, to become "commodity android devices for the common person" --- I'm betting on that.
Right, the implication is that the global economy will continue to spend $30T/year on human cognitive labor, but spending, what $1T a year for superintelligent AI will be too much to swallow.
Cars will be so low-margin and commoditized that car companies go bust, and everyone will stick with horses.