I have spent my time easing into AI (Artificial Intelligence). Up to this point, I have found it interesting more than anything. I even took a few AI courses, from Generative Prompting to learning all about Vector Databases. Even with the rumors of AI possibly taking away my job, as a Software Engineer, I wasn’t stressed.

Lately, however, this Administration has gone full-on into promoting and increasing the development of AI. It feels like each day there is something written about AI replacing factory workers and/or Software Engineers. I have read several articles of people (mainly young people) who went to “Coding Camps” struggling to be hired – because AI can do the entry-level coding in a second of the time.

Even with that I hadn’t heard much about an AI Bubble Burst – like the Housing Bubble or the Dot-Com Bubble. That is until the last couple of days – hearing that Peter Thiel, an entrepreneur & venture capitalist, dumped shares in NVIDIA and Tesla. The next day I heard AOC talking about not bailing out the AI companies. They have been going to the Administration asking for help if they go under (or at least that is my limited understanding at the moment).

It’s all interesting and I actually am not sure how to go about researching this but I want to – so there’s that.

According to Yahoo Finance:

The so-called “Magnificent Seven” — Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla — now collectively command a market capitalization greater than the Chinese economy.

Other than the “Magnificent Seven” , the only thing I got out of that article was that people are still trying to understand what’s going on – as if the people believe we are in a bubble and the other half do not. I’m thinking that since these seven companies take up most of the financial market – if they fail it will not be good for the whole market?

Also, since a good portion of companies today use AI – if there is a burst all these companies will be affected as stated, in a sense, by the head of Google’s parent company (Alphabet), Sundar Pichai. He stated that “Every company would be affected if the AI bubble were to burst”.

Then there is the amount of energy (electricity) it takes to run AI – that may have an effect on the success or failure of AI – which may contribute to the burst.

In Conclusion

I can not tell whether there will be a burst or not, but I do believe it is something we need to continue to watch. If there is going to be a burst, looking back on other bursts, is there anything we can do to minimize it? As stated above, the majority of companies are now using AI in some form or fashion – and if it fails I can see a world of hurt. I previously wrote an article about how Amazon is firing 14,000 to 0,000 corporate employees – to be replaced with AI.