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Big tech has spent $155 billion on AI this year. It’s about to spend hundreds of billions more
(www.theguardian.com)
this post was submitted on 02 Aug 2025
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Anyone remember the dot-com bubble?
At least they‘ve wasted their money for research of what doesn‘t work instead of just building silly products as for the .com bubble.
Humanity will gain insights to the kind of AI approaches that won‘t work much faster than without all the money. It‘s just an allocation of human efforts
Not really. None of what has been going on with transformer models has been anything but hyper scaling. It's not really making fundamental advances in technology it's that they decided what they had at the scale they had makes convincing enough demos that the scam could start.
It has been more than just hyperscaling. First of all, the invention of transformers would likely be significantly delayed without the hype around CNNs in the first AI wave in 2014. OpenAI wouldn‘t have been founded and their early contributions (like Soft Actor-Critic RL) could have taken longer to be explored.
While I agree that the transformer architecture itself hasn‘t advanced far since 2018 apart from scaling, its success has significantly contributed to self-learning policies.
RLHF, Direct Policy Optimization, and in particular DeepSeek‘s GRPO are huge milestones for Reinforcement Learning which arguably is the most promising trajectory for actual intelligence. Those are a direct consequence of the money pumped into AI and the appeal it has to many smart and talented people around the world
I'm honestly hoping for a repeat. Hopefully Microsoft goes down this time too, since they're heavily into AI. Twitter, Meta, Google and Amazon too. It's really just the worst of the worst.
They remember it too. It's why they try to keep the bubble going by jumping to the next shiny investor lure. Just a few years it was all deep learning, blockchain and NFT. One guess is that they'll go for humanoid robots next.