Comment by bluGill
19 hours ago
Does it weaken the US though? It weakens the big providers but most of the economy is in companies buying and this helps them save money.
19 hours ago
Does it weaken the US though? It weakens the big providers but most of the economy is in companies buying and this helps them save money.
Yes, it damages its image, this is further made evident given the amount of propaganda that follows each time. Why would you invest in claude or codex if you just read how China's stuff is better?
Image is not the economy. AI is a large part of the stock market, but a much smaller share of the economy.
Isn't most of the economy riding on the stock of these handful of companies though?
Most of the growth is. If we removed AI, the US would be in a severe recession right now. Most of the absolute market cap, employment, capital, and other metrics that are not directly coupled to growth paint a better distributed picture.
Of course, growth like this can only continue for so long without changing that.
> Isn't most of the economy riding on the stock of these handful of companies though?
No.
Well, yes, because the US government has staked the future of the country's GDP on AI. They're even divesting from science as a whole and putting it into data centers.
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GDP growth in the United States is in AI and healthcare. AI capital expenditure is around 5% of total US GDP. Housing right before the 2009 market collapse was around 6.7%.
Biggest issue I see is housing has more real value than AI expenditure. Demand is real and isn't based purely on a few companies valuation or marketing spin. Nearly 2 decades later we still haven't caught up to construction rates before the 2008 collapse. When the bubble pops it's going to really suck.