[reducesuffering]

Reminder that while there are many naysayers who have been on the wrong side of AGI development progress the last decade…

There are two $1T companies who are all-in on RSI internally right now. They are supported by $20T of market cap plowing R&D into their efforts. You can think it’s dumb money at your own peril, however the market rewards intelligent allocation…

[baq]

The market can also be quick and brutal to punish mistakes, especially when leverage is high. We can be in 1998, but we can be in 1995; you stand to make a ton of money if you know which one we’re in

[goatlover]

How do the markets know it's intelligent allocation before RSI is actually a thing? What makes those companies immune to failure?

[not-a-llm]

them having an actual product with huge demand makes them immune

Just like Tesla was immune from all the naysayers which were saying its a highly unprofitable company which will 100% go bankrupt because its economics dont make any sense, and they lost huge amounts of money shorting the stock

[yorwba]

Tesla is profitable, but income per share has been very low relative to share price. People who were short Tesla weren't necessarily betting on a bankruptcy, just that shareholders wouldn't put up with the low ROI for much longer. And depending on exactly when they shorted it, they might've actually made a profit.

In contrast, AI companies that are actually unprofitable are dependent on continuously raising additional money to sustain their operations, so a sudden drop in market confidence could become a self-fulfilling prophecy as it makes it more difficult to raise money which makes the business more risky which decreases market confidence in a downward spiral.

An actual product with huge demand is not enough to avert bankruptcy, you also need to serve that demand profitably (like Tesla does).

[mbgerring]

“The market rewards intelligent allocation” is such a straightforwardly false statement that I can’t believe anyone still says this with a straight face. The last ten years of the US economy have just been scam after scam after scam, and people just keep saying this.

[blitzar]

NFTs were worth more than $1 trillion so we know that they were "better" than the Ai efforts of today because “The market rewards intelligent allocation”

[not-a-llm]

they never were

if I sell 1 token at $1 and there are a trillion of them minted, that does not make a $1T market cap

but if you want to prove a point against AI with fake data, sure

[blitzar]

If I sell 1 token at $139.14 and 13.17 billion of them minted, that makes a $1.8T market cap.

Space data centres are the panicle of intelligent allocation.