Why AI Companies Suck

Remember when discussions of AI were science fiction, the future of AI was far in the future, and the worst thing about it was the prospect of killer robots and Skynet?

 

And if we were lucky, the killer robots would play tricks on each other while one of them tries to kill John Connor... 

 

Well... Congratulations. Now that we have AI, it sucks, the companies suck, there's no killer robots, there's no Skynet (not yet at least), and AI is now fueling a stock market bubble. 

 

Oh, and good luck if you're entering the workforce and want an entry level position. AI has made your future job obsolete. You aren't needed any more.

 

And you cannot even get a job at a grocery store, because they've replaced the cashiers with self-checkout.

 

And you cannot get a factory job either. Guess why? Robots took your job.

 

I won't be surprised when people start taking baseball bats to the self-checkout machines.

 

Meanwhile, let's explain why all the AI companies suck. 

1. OpenAI

• Why It Sucks: Despite raising massive funding and achieving high valuations, OpenAI remains unprofitable. New releases often fail to meet expectations, producing results that underwhelm users.

• Overvaluation: The company’s high valuation is not backed by consistent revenue or significant technological breakthroughs.

• Market Impact: OpenAI’s inflated valuation feeds into the broader AI stock market bubble.

2. Nvidia (NVDA)

• Why It Sucks: Nvidia’s AI hardware dominates the market, but advances by smaller startups show that equally capable AI can be run with less computing power, challenging Nvidia’s assumed dominance.

• Overvaluation: Despite strong revenue growth, its stock price reflects overly optimistic expectations.

• Market Impact: Stock volatility highlights the instability of AI-sector investments.

3. Alphabet (GOOGL)

• Why It Sucks: Alphabet’s AI initiatives have struggled to produce breakthroughs that meaningfully affect revenue.

• Overvaluation: Stock prices remain elevated despite modest returns from AI, suggesting investor expectations are inflated.

• Market Impact: As a major AI player, Alphabet heavily influences investor sentiment in the sector.

4. Microsoft (MSFT)

• Why It Sucks: Microsoft’s AI projects, while high-profile, haven’t yet transformed core business operations or generated substantial incremental revenue.

• Overvaluation: Stock prices reflect high expectations that may not be met in the near term.

• Market Impact: Microsoft’s involvement amplifies market enthusiasm, which may be unsustainable.

5. Meta Platforms (META)

• Why It Sucks: Meta’s AI initiatives face challenges in adoption, monetization, and demonstrating meaningful value.

• Overvaluation: Its stock remains elevated despite limited returns from AI, suggesting overhype.

• Market Impact: Meta’s performance affects perceptions of AI investments across the market.

6. Tesla (TSLA)

• Why It Sucks: Tesla’s AI efforts in autonomous driving continue to face regulatory, technical, and safety hurdles.

• Overvaluation: Stock prices assume faster progress and higher returns than realistic.

• Market Impact: Tesla’s stock volatility contributes to instability in AI-related investments.

7. Amazon (AMZN)

• Why It Sucks: Amazon’s AI initiatives have struggled to scale and deliver significant revenue improvements.

• Overvaluation: Its stock reflects high expectations despite limited returns.

• Market Impact: Amazon’s AI performance helps drive overall market hype, feeding the bubble.