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  Animats
  That's sort of a random heading put on reports of Q3 earnings.The big news is "Alphabet shares record their worst day ever, shedding $500 billion in value"[1] Google ad revenue has dropped. AI results from search engines don't generate the click-through revenue that search ads did. That's scary for Google management.Roblox reports user counts are down. Reddit traffic is down and management blames AI search not referring users to Reddit. None of this seems to be closely related to AI costs. That's losing the competition for attention.Intel reports PC sales are down. That's likely related to RAM costs, which made price/performance of new PCs drop.There are issues with AI costs, but they don't seem to be the cause of these reported Q3 earnings drops.[1] https://www.nbcnews.com/business/markets/alphabet-google-sto...
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  cmiles8
  The market is going to react badly to even the slightest hint of a slowdown on AI. The whole AI space is so heavily leveraged up with debt and VC cash at the moment that even a slight slowdown will cause the whole thing to collapse in a financial $hitstorm the likes of which we’ve not seen in a while.Theres “big bets” and then there’s heavily leveraged bet the farm with leveraged debt. The first one hurts when it pops. The second one wipes people out.
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  WarOnPrivacy
  Intel's finance chief David Zinsner said the firm did not expect to bring in more cash than it spent this year, and forecast lower-than-expected revenue for its fourth quarter. You could have manufactured enough ARC video cards to meet demand. Going forward, you could manufacture solutions to bring local LLM options closer to affordability.If you're into manufacturing stuff people really want, that is.
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  taeric
  How much of this is the current uncertainty over politics in the US? With the incredibly frustrating aspect that we can't really directly discuss exactly how corrupt a few of the main actors have been, to date.And the oddest fear is precisely what will happen if we start trying to ramp up a bit of what used to be normal accountability?
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  tjohnell
  How come I never see these threads when Nasdaq has a banger of a day? Stocks fall faster than they rise - it's not useful discourse to panic every time there's a correction. Give it a few days and we'll be back where we were.
• psadri
  There is a strange dynamic between data center build out and inference prices.If the data centers do get built and come on line, we will see an increase in compute supply and that should lower inference prices.If they don't, for whatever reason including financial ones, then we will not have enough compute to meet demand and inference prices will rise. But this would mean the financial concerns were misplaced.Where is the equilibrium point?
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  itanalot
  Windows will soon lose the normie consumer market, and all that's left for them will be gamers (of which they will make zero dollars from) and enterprise (of which their successes will broadly match laptop job employment figures)
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  vanuatu
  How much of these falls are due to the AI buildout as a whole vs. AI disrupting certain business models?More agents browsing the web and people relying on AI summaries -> less revenue for Google Search and RedditAI drastically reducing the barrier to game dev -> less users on Roblox
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  mcbuilder
  Yet https://openrouter.ai/rankings still shows exponential growth at every scale. So demand isn't slowing down.
• anon
  undefined
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  hn_submit
  Aaah, finally the sell-off has begun. Anthropic's listing will probably disappoint and OpenAI has already decided not to go public at this time (probably due to lack of demand for their stock).Soon, we'll be able to buy DRAM and SSDs again cheaply.
• 1vuio0pswjnm7
  Actual title: US tech stocks see sharp falls as AI spending nears $1tn
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  locallost
  The market is still up 20% since May. Some of the stocks collapsing now were purely speculative, e.g. Intel. It was a crappy company a year ago and nothing changed dramatically for it to be a less crappy company, but AI and the stock went to the moon.
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  zamalek
  It's truly bizarre for there to be widespread hope and excitement for a bubble burst. It's arguably stupid, and I'm one of the stupid people because I find myself hoping for it too.
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  Varelion
  I saw this coming a week ago and yanked my investments away from stocks. CRASH AND BURN, BABY!! WOO!!
• yogthos
  Looks like I got my Kimi subscription just in time.
• inshard
  If I had interest in FAANGS right now. I might sell now in anticipation of reallocation to Anthropic and other new entrants to the public markets in the AI space. I wonder if some of this is partly the liquidity shock an Anthropic IPO may cause for retail investors.
• tinyhouse
  I think the assumption that AI demand will keep growing is a no-brainer based on the value that AI brings. However, you need people and companies to pay for that demand, and if people and companies start losing money due to AI and job cuts, then you have demand but not enough money to pay for it.
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  jdw64
  I’m not sure whether AI companies can keep going with these low costs. My workflow is already completely merged into AI. I don’t want to go back to digging through Stack Overflow and spending an hour writing 100 lines of code like before.
• ihsw
  [dead]
• declan_roberts
  I don't know how anyone could be bearish right now. We are seeing technological innovation at a pace I never believed possible. Bullish on AI. Bullish on America!
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  elpakal
  Google's AI search is abysmal and is almost always, at least, 30% wrong (outdated, wrong info) ime. I find that I just use the chat interface to save tokens on basic things so I don't want to waste my real AI subscription tokens on basics.In theory I understand their change to make search -> AI search instead, but I have a hard time believing that this was benchmarked in any way and not rushed to desperately remain relevant in the AI race.