Tesla has been overvalued for over a decade with the promise of “fully autonomous cars” and it’s still not losing its value, despite not meeting that (and probably never will, as the computation necessary to achieve it is bounded by physics).
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@stagas wrote on textlog https://textlog.cc/post/3770
That's a different situation. Tesla's a public company whose valuation is driven by the market, which has the right to be irrational. My understanding is that the AI buildout is financed such that the companies need to turn a profit by ~2030 or else they drown in capital costs.
Or maybe the frontier labs become Tesla-like, if it turns out investors just want to believe in the dream and don't care about financials that don't make economic sense. I just don't see that happening, given current sentiment and the overwhelming unpopularity of AI in the West.
