Thread regarding SAP layoffs

Red Flag’: Analysts Sound Major Alarms As AI Bubble Now ‘Bigger’ Than Subprime.

With SAP and almost every other company flushing billions down the toilet chasing a phony dream, what happens after the crash?

https://www.commondreams.org/news/artificial-intelligence-bubble

MarketWatch reported on Friday that the MacroStrategy Partnership, an independent research firm, has published a new note claiming that the bubble generated by AI is now 17 times larger than the dot-com bubble in the late 1990s, and four times bigger than the global real-estate bubble that crashed the economy in 2008.

Perkins told Axios that he’s particularly wary because the big tech companies are claiming “they don’t care whether the investment has any return, because they’re in a race.”
“Surely that in itself is a red flag,” he added.

“I think that there will be a lot of capital that’s deployed that will turn out to not deliver returns, and when that happens, people won’t feel good,” he said.


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| 1884 views | | 7 replies (last October 29) | Reply
Post ID: @OP+1k8bah6ar

7 replies (most recent on top)

@yr Not true. The board know what they are doing. They are good.

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Post ID: @yt+1k8bah6ar

AI is a bubble but it's weird because it's circular with all the companies investing in each other just sending the same money back and over and around in circles between the hardware makers, the hyperscalers, and the model development companies.

When it bursts the few companies effected will be ones like SAP where they are paying into the circular bubble but getting nothing back. None of the big players are making deals with SAP for anything, SAP are just throwing money at a tech that might work, and hoping it means they can lay off another 10,000 in the next 24 months.

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Post ID: @yr+1k8bah6ar

I work for a top 3 management consultancy firm. I can only tell you most of the AI / LLM projects are sponsored by the hyperscalers. They are not paid by the clients. And the ROI is bad. You don’t need the latest AI, RPA and chatbots already serve most industries well enough.

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Post ID: @ct+1k8bah6ar

SAP management will ensure that SAP will survive the bursting of the bubble.

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Post ID: @cb+1k8bah6ar

@ap SAP's 8 year old programmatic automation relabeled as "AI" is pretty funny. AI is nothing more than a 50 billion dollar search engine.

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Post ID: @c0+1k8bah6ar

@OP At least SAP’s 8-year investment in using AI to 3-way match a purchase order, goods receipt document, and vendor invoice won’t go down the big drain when the big bubble bursts.

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Post ID: @ap+1k8bah6ar

SAP is the "AI we have at home" from the memes.

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Post ID: @aj+1k8bah6ar

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