Post
Topic
Board Economics
Topic OP
The AI Bubble
by
WillyAp
on 24/09/2025, 12:34:24 UTC
AI is all present, many apps have an all new approach trying to force you onto the AI bandwagon. Their issue is to make it important enough that we pay.
Perplexity gave free access to its tool to india. Still those prompts cost money to work them.

Quote
In July Perplexity, a startup hoping to dent Google’s dominance in search, made the boldest move: it struck a deal with Bharti Airtel, one of India’s biggest telecoms firms, to provide its AI service (usually $240 a year) free for a year to all 360m Airtel customers. According to Sensor Tower, a market-intelligence firm, downloads of Perplexity in India soared by almost 800% month-on-month after the Airtel tie-up, compared with gains of 39% and 6% for ChatGPT and Gemini

The issue is: How many people can afford a $20 monthly fee?

Quote
For example, Netflix, a video-streaming service, costs as little as $1.69 a month in India, compared with $7.99 in America. For cloud services with a low marginal cost, this is no great sacrifice. But running AI queries is expensive. Processing costs for typical users currently hover at around $0.07 per million “tokens” (the units of data processed by AI models) and the response to a single query can run to hundreds or thousands of tokens. That expense is the same whether the user is in Bangalore or the Bay Area.

https://www.economist.com/asia/2025/09/17/ai-is-erupting-in-india
Paywall free: https://archive.today/99zZk

People in the western world usually spend a little here and there. Vacations, daily Starbucks coffees cost them a house. House owning under recent generations is around 12% vs 1950 at 50%.

Fact is the world is a poorer place. Big bucks have forgotten that users need money to spend, here Elon comes in with general public income.
There is too much money in the wrong hands, the leftist thinking process evolves around that.

AI to begin with is thought to be good at developing software, the truth is it isn't. Why? Because every programming logic is created by the developer, he/she/they follow a line. The AI fetches code parts from the Internet. 

Quote
the think tank Model Evaluation & Threat Research randomly assigned a group of experienced software developers to perform coding tasks with or without AI tools. It was the most rigorous test to date of how AI would perform in the real world. Because coding is one of the skills that existing models have largely mastered, just about everyone involved expected AI to generate huge productivity gains.  

Source: https://www.theatlantic.com/economy/archive/2025/09/ai-bubble-us-economy/684128/

Customer Service AI is brilliant, Imaging, Video too, Drohne and warfare all good. But not one thing where people say I buy the AI browser for $5 per month when the non AI Browser is just as good.

Additionally comes a huge security concern, AI is made to collect data, people  don't seem to care.  

The AI Bubble is closing its bursting point. That should make the management wake up, it is the management's biggest failure to beware Investors for overexposure, They don't care.