Brutkey

Mike McCaffrey
@mikemccaffrey@drupal.community

I just asked #ChatGPT how it "thinks" the #AIBubble will collapse. I'm looking forward to seeing how accurate the predictions will turn out to be (especially since I basically agree with everything it is saying).

Prompt: How will the Al investment bubble collapse?

ChatGPT:

If the Al investment bubble collapses, it would likely follow patterns similar to previous tech bubbles, like the dot-com crash in the early 2000s.
Here's how such a collapse might unfold:
1. Overhype and Overvaluation (Current or Pre-Crash Phase)
Startups and public companies get massive funding based on inflated expectations.
Revenue and profit often lag behind valuation.
Companies may rebrand or pivot to Al without real tech just to attract investors.

ChatGPT:

2. Market Saturation and Missed Expectations
Too many similar products (e.g., countless chatbots, copilots, Al productivity tools).
Promised breakthroughs (AGI, full autonomy, etc.) may fail to materialize quickly.
Costs of scaling models (compute, energy, data) increase faster than returns.
Users and businesses discover limitations in accuracy, ethics, and utility.

ChatGPT

3. Financial Pressure Builds
Monetization fails: High user interest doesn't translate to sustainable revenue.
Companies burn cash without clear paths to profitability.
Interest rates or macroeconomic conditions worsen, drying up capital.
Investors start demanding real results - not just promises.

ChatGPT:

4. Confidence Collapse
A few major players miss earnings, go bankrupt, or reveal fraud.
Investor sentiment shifts quickly, triggering mass sell-offs.
Private equity and VC firms pull back funding or try to exit.
Layoffs, shutdowns, and fire sales begin across the sector.