The AI ecosystem is taking its form. NVIDIA provides the microchips and other systems to those ecosystems. The problem with that ecosystem is its addiction to raw materials. If one part of the ecosystem falls, the entire AI business falls. If we think. About the new table-sized supercomputers that can run the AI or algorithms. Those systems will not remove the cloud-based solutions. The AI that runs on those table-top supercomputers requires training.
So, the system users. Might use cloud-based solutions. And give the AI the training. It needs. And then the system drives that “Trained code” to the table-top system. The cloud-based system is like the lake, and the table-top version is like a droplet that the system separates from the main system. But the development of those things requires money.
The problems with AI companies are minimal profits and great costs. Says some investors. A special feature of the AI business is that the product is immaterial. To sustain the interest of the users. The AI must be more. And more advanced. This means. Fast advancement is the requirement. For a successful AI company. Large language models require. Lots of calculation power.
And the need for new processors grows every time. In the cases. When new AI solutions are coming into marketing. The company must also renew its hardware. And that costs lots of money. Another thing is that the AI is quite a new product for marketing. That means the investors will not know if there are any legal statements. That will put limits on the AI development. Another thing that makes AI a problematic investment object is that in some media.
The AI workers and companies play the role that is reserved for stepsons. AI companies are not known for treating their workers. As they were important people. Sometimes, AI companies are mentioned. As treating their workers. As a garbage. Or a necessary evil that exists because there is nothing that can replace them. Or they just wait. For the AI that replaces those workers. These kinds of things cause problems for investors to estimate. How big profits their investments can bring. The biggest problem with the AI is this.
It's a new and complicated product. This means the AI requires the entire data center to be effective. The requirement for those large data centers forms in two ways. First, the algorithm is complicated, but another thing is that the AI service provider requires a server. That can offer that service to as many users as possible.
The companies must have enough users. So that they can get enough license payments. But that causes another problem. When new users come to use the AI. Those AIs require larger and larger servers. There are also free applications whose purpose is to entice users to buy licenses. That gives more abilities. To the user. The investors need their money back. But the requirement for new systems means. Companies need to invest in their data centers. Those investments require money.
The AI interests the investors. But the problem is that. The AI ecosystem. It is in danger of overheating. That means that when investors put money into those companies, their values rise very high. That value is much higher. Than their real values. The investors' money. Is always. A little bit problematic. Investors want their money.
With an agreed interest amount. That means. Those companies cannot use. That money. Into their new systems. There is a possibility that the investor’s profit. Will be paid. From some other investor’s money. Another way to invest in a company is to buy stocks. Those investors buy stocks, and that puts money into the company’s cash box. That raises the company value. But if there are too many investments. That brings so-called empty value into the company’s stocks. And that can cause. A very fast collapse. Into those companies' stock values.
The problem is this. When an investor sees. That investment loses its value. This causes the need to sell those stocks. If some big investor. Sells lots of stocks in a short period. That can cause the collapse of the company’s stock values.
https://futurism.com/artificial-intelligence/ai-investors-furious-bubble
https://futurism.com/artificial-intelligence/mercor-meta-ai-labor
https://futurism.com/artificial-intelligence/financial-world-nvidia-earnings-call

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