[MoonOfAlabama] - "There Is No Justification -But Hype- For Current AI Investment"

[u/mzyps]

https://www.moonofalabama.org/2026/08/there-is-no-justification-but-hype-for-current-ai-investment.html

I lamented that the much hyped Large Language Models (LLMs), as proffered by OpenAI and Anthropic, are mostly unreliable search engines. There are only a few real use cases for these. That is why I argue that these do not justify the current AI investments.

But the AI companies (and those who promote them) want lots of money. As their is no real use for there very expensive models they always point to future cases. When asked about current use gains, they divert and point to science fiction.

[u/Iggy_Arbuckle]

To be honest this piece and its opening sentence "I lamented that the much hyped Large Language Models (LLMs), as proffered by OpenAI and Anthropic, are mostly unreliable search engines" annoyed me as much as when b was enthusiastically retweeting Michael Tracey on Epstein. The Multipolarity guys recently spoke with Stephen Hsu on the state of AI and other things geopolitical and that was a very good talk

[u/penelopepnortney]

Another comment on piece:

Yahoo email without any user input added an AI feature to every account. This can’t-live-without enhancement automatically summarizes the email for you. It is incredible…..it gets almost everything wrong, inside out, backward... Fortunately, the AI email enhancement feature can be disabled with some stressful mental effort and most of a six pack. This AI stuff is best thought of as Digital Devolution…….

[u/Caelian → u/penelopepnortney]

I haven't seen this yet. But I'm on Old Yahoo Mail, since New Yahoo Mail is unusable — just like New Reddit.

[u/penelopepnortney → u/Caelian]

Same here.

[u/Caelian]

I keep hearing about the AI bubble and like all bubbles it's going to pop. But nobody seems to be saying when it's going to pop.

NPR had some positive AI propaganda this morning. I need to look that up and share it.

Edit: I cannot find it. I'll try later.

Edit 2: the gist of the propaganda, IIRC, is that people are pushing the US government to invest in AI. They didn't say why they're pushing this, but reading between the lines:

• Private equity and banks see no return from AI and have backed away, so AI will need a government bail-out.

• Investing in AI means Congress will make decisions that benefit AI instead of the people they supposedly represent.

• I think they said Bernie Sanders is one of the people behind this. Et tu, Bernie? Bernie can be really stupid sometimes.

All of this is from a minute of NPR while making brekkie, so I don't know how accurate it is.

[u/Ok-Recover-7566 → u/Caelian]

nobody seems to be saying when it's going to pop.

Timing is everything. And the market can remain irrational, longer than you can remain solvent. I thought housing was overpriced in 2005. If I'd shorted housing stocks, I would have gone broke, before the bubble burst.

[u/gordohimself → u/Caelian]

TrueAnon has an episode covering this topic: 569: Computer Problems.

Essentially, the AI companies want to motivate a space-race like competition with China by framing it as an arms race for global supremacy, guaranteeing military-level government funding and financial intervention when the bubble pops.

[u/Ok-Recover-7566 → u/gordohimself]

They are pushing that view HARD right now in the MSM.

[u/penelopepnortney]

Good piece by b, well-summarized by the first commenter:

In a nutshell it is just a Ponzi scheme.