Ep. 473 Elon Predicts No Work and No Money
Adam Haman returns to discuss an intriguing panel featuring Elon Musk and Nvidia’s Jensen Huang as they announced a business deal with Saudi Arabia.
Mentioned in the Episode and Other Links of Interest:
- The YouTube version of this conversation.
- This episode’s sponsor, the Scott Horton Academy.
- The panel featuring Elon and Jensen Huang.
- Bob critiques Paul Craig Roberts on MRI outsourcing.
- The HamanNature substack.
- Help support the Bob Murphy Show.
About the author, Robert
Christian and economist, Chief Economist at infineo, and Senior Fellow with the Mises Institute.
Outstanding episode.
Currency of some kind will always exist to enable trade
I have a senior technical role in big tech and have full access to the latest industry AI technology and am involved in deploying AI capabilities myself. I use AI routinely. I think you’re empirically wrong about the AI bubble. Lookup the financials on CoreWeave. Look into OpenAI’s financials. Look at the expense vs profit of Google, Facebook, etc for AI services. It’s HUGELY unprofitable for most involved. Most AI projects underwhelm and cost oodles. Nvidia is one of the few winners, and most of that growth will not be lasting. As the competitor hardware approaches from Amazon and Google and Cerberus and others mature Nvidia’s ability to charge a premium goes away.
The only way you can say AI isn’t in a bubble is if you assume it will lead to AGI within the next few years at most. What we have today is a speculative bubble, funded by hype which unlocked hundreds of billions in investment to subsidize end users of AI becsuse the value of the AI services isn’t high enough to justify the cost of operations: nobody will pay for it if they’re shown the real bill. ChatGPT is losing money hand over fist.
According to various talking head econometricians the AI bubble is the majority of the record “GDP growth” just printed. I.E. without it, the economy would be in recession.