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AI bubble bursting = 2008 recession.
But it would be a good thing.
Painful, but good.
The hype around AI got way ahead of the value it delivers imo and most people paying $20/month think AI is cheap.
It isn't.
Companies charge $20 for basic usage, but serving one heavy user costs way more:
→ One Google Cloud A3 Mega machine costs roughly $67K/month if it runs nonstop
→ One NVIDIA DGX H100 server: ~$700/month in electricity alone (before cooling or staff)
→ Claude Opus 4.7: $5 per 1M input tokens and $25 per 1M output tokens.
And it's not just power.
Helium matters too, it's critical for chipmaking.
@Reuters reported helium spot prices doubled since the Middle East crisis began. Early spot increases were already around 50%, and prolonged disruption could push prices back above $2,000 per thousand cubic feet.
And that cost pressure ends up hitting the end user.
We're also at the point of diminishing returns where models keep improving, but most of the output flooding the internet is low value.
People don't want to watch AI slop.
They want content with real people making it.
A correction would force AI companies back to reality.
And in the end, we, the consumers would win.