The BigAI Slowdown: a Voluntary Market Correction
Right at the moment when the financial market shows signs of the AI bubble bursting, the captains of the industry together propose a slow down. Big Capital never refrains from anything out of responsibility, so we must look elsewhere for the explanation. My intuition is leading me into thinking that a call for slowdown can be a sign that the industry has begun to recognize that the financial dynamics surrounding AI have become dangerous enough that some form of controlled deceleration may be in its own interest. The contemporaneous reporting is unusually revealing. On September 14, AI-linked stocks fell sharply after Dario Amodei, Sam Altman and Elon Musk all endorsed slowing the pace of AI development; Nvidia fell, AMD fell even more, and the selloff spread through semiconductor and infrastructure stocks. Reuters also notes that investors are increasingly worried about debt, circular financing, enormous capital expenditures and rising yields behind the AI buildout. Why now ? ...