The AI Market Is Hitting Peak Absurdity
garymarcus.substack.comI think it is clear the whole AI market is absurd and filled with snake oil. My question is how long can the absurdity last? Perhaps forever. The stock market seems increasingly detached from reality and no one really seems to care.
There are ebbs and flows of absurdity, with the peaks being bubbly moments. I will never forget the fact that Dentacoin existed in 2017, and garnered attention for being a crypto token that you could use to pay your dentist. It's a multi billion dollar market! And the marketcap reached a $2 billion mark.
Why not wind down the company and just launch the new AI infra venture separately? Didn't want to fill out the forms again? I can't imagine having the brand baggage of a failed apparel company is a benefit.
If you've raised money, it's difficult to give it back and then re-raise for the new thing. Lots of paperwork not just creating the new entity but in winding down the old and distributing funds back. Can it be done? Yes, surely. But it's not simple. That said, I don't know too many investors that would trust a shoe team to become an AI team. But obviously, there's one.
This way they pump the stock for a little while before the whole thing comes crashing down.