AI is fake and gay. I eagerly await the day that bubble bursts and the market floods with cheap ram and storage.
AI is fake and gay.
I eagerly await the day that bubble bursts and the market floods with cheap ram and storage.
yes, I generated this, but it's important
The current AI boom is often framed as a technological revolution, but beneath the surface lies a deeper structural problem: the system is being optimized for investor returns, not societal benefit. And because of that, it contains the seeds of its own failure — even if the technology itself succeeds.
A Reflexive Investment Loop, Not a Productivity Revolution
Unlike past tech cycles driven by clear productivity gains, today’s AI expansion is propelled by a self‑reinforcing financial loop:
Investors expect high returns from AI Companies raise capital to chase those returns Capital funds massive data‑center and chip purchases Those purchases signal “success” to the market Investors expect even higher returns
This loop doesn’t require consumer benefit or productivity growth. It only requires continued belief.
Nvidia as the Center of Gravity
Nvidia sits at the heart of this reflexive system. It invests in AI startups that, in turn, buy Nvidia hardware. Hyperscalers do the same. This creates circular demand that looks like organic growth but is partly financial feedback.
It’s not fraudulent — real products are being built — but the structure resembles a vortex. Demand is amplified by capital flows rather than grounded in sustainable economic value.
The Physical World Is Now Feeling the Strain
Unlike software booms of the past, this cycle consumes enormous real‑world resources:
Electricity diversion: Data centers draw power equivalent to small cities, raising consumer rates and delaying grid upgrades. Water diversion: Cooling systems compete with households and agriculture, especially in drought‑prone regions. Chip manufacturing diversion: Foundries prioritize AI accelerators over consumer electronics, raising prices and reducing availability.
These are not abstract concerns. They are measurable, immediate, and already affecting everyday life.
Accelerated Depreciation Means Accelerated Waste
AI chips become economically obsolete in 12–18 months — far faster than traditional hardware. This drives:
more e‑waste more rare‑earth extraction more discarded servers and cooling systems
The environmental footprint grows even as consumer benefit remains limited.
Consumers Are Paying for a System They Don’t Benefit From
The most striking contradiction is this:
The system succeeds financially even as it fails socially.
Consumers face:
higher utility bills higher electronics prices slower infrastructure improvements reduced access to shared resources
Meanwhile, the financial gains accrue almost entirely to investors and hyperscalers.
A System That “Must Fail, Even If It Succeeds”
Even if AI ultimately transforms industries, the current investment structure is unsustainable. It relies on:
capital flowing faster than productivity grows resource consumption outpacing public tolerance hardware cycles outpacing monetization valuations outpacing real demand
This is why the system can “fail” financially or socially even if the technology itself succeeds.
*yes, I generated this, but it's important*
The current AI boom is often framed as a technological revolution, but beneath the surface lies a deeper structural problem: the system is being optimized for investor returns, not societal benefit. And because of that, it contains the seeds of its own failure — even if the technology itself succeeds.
A Reflexive Investment Loop, Not a Productivity Revolution
Unlike past tech cycles driven by clear productivity gains, today’s AI expansion is propelled by a self‑reinforcing financial loop:
Investors expect high returns from AI Companies raise capital to chase those returns Capital funds massive data‑center and chip purchases Those purchases signal “success” to the market Investors expect even higher returns
This loop doesn’t require consumer benefit or productivity growth. It only requires continued belief.
Nvidia as the Center of Gravity
Nvidia sits at the heart of this reflexive system. It invests in AI startups that, in turn, buy Nvidia hardware. Hyperscalers do the same. This creates circular demand that looks like organic growth but is partly financial feedback.
It’s not fraudulent — real products are being built — but the structure resembles a vortex. Demand is amplified by capital flows rather than grounded in sustainable economic value.
The Physical World Is Now Feeling the Strain
Unlike software booms of the past, this cycle consumes enormous real‑world resources:
Electricity diversion: Data centers draw power equivalent to small cities, raising consumer rates and delaying grid upgrades. Water diversion: Cooling systems compete with households and agriculture, especially in drought‑prone regions. Chip manufacturing diversion: Foundries prioritize AI accelerators over consumer electronics, raising prices and reducing availability.
These are not abstract concerns. They are measurable, immediate, and already affecting everyday life.
Accelerated Depreciation Means Accelerated Waste
AI chips become economically obsolete in 12–18 months — far faster than traditional hardware. This drives:
more e‑waste more rare‑earth extraction more discarded servers and cooling systems
The environmental footprint grows even as consumer benefit remains limited.
Consumers Are Paying for a System They Don’t Benefit From
The most striking contradiction is this:
The system succeeds financially even as it fails socially.
Consumers face:
higher utility bills higher electronics prices slower infrastructure improvements reduced access to shared resources
Meanwhile, the financial gains accrue almost entirely to investors and hyperscalers.
A System That “Must Fail, Even If It Succeeds”
Even if AI ultimately transforms industries, the current investment structure is unsustainable. It relies on:
capital flowing faster than productivity grows resource consumption outpacing public tolerance hardware cycles outpacing monetization valuations outpacing real demand
This is why the system can “fail” financially or socially even if the technology itself succeeds.
(post is archived)