Distorting the economy is a real issue and should be talked about.

There is way too much front-loading of hiring strategies and infrastructure that happens on future (over-)promised capabilities, TAM and profitability projections.

If we are lucky it fizzles out into reasonable valuations and sound investments. If not we have had a giant misallocation of capital on an unprecedented scale setting us back by many many years, a diamond shaped work force in some sectors causing labour shortages and reduced growth in the long run.

The thing I find off in his analysis is he just assumes AI is rubbish and won't get better, hence all the investment in it is wasted. I don't think that's realistic. Even if you are skeptical there's some chance it'll work out.

I've read a handful of his LLM articles completely, last year and this year. What I'm getting from his articles (I think) is this:

The USA stock market is largely driven by a dozen of FAANG companies whose valuation is rising fast and who are investing tens of billions in the LLMs. And all those companies are mono-dependent on the Nvidia cards, whose valuation is skyrocketing based on those expenditures. So point 1 - if LLMs would be as profitable as expected, the whole FAANG top-10 will slow down or even drop.

Point 2 he makes - a lot of the LLM-only companies are deeply in debts, acquire more debt, and continue kicking repayment can down the road, all at the same time. So assuming (again) that LLMs are not as profitable as expected, some LLM-only companies can go bust.

I think he wasn't making a statement that LLMs are intrinsically bad or useless, at least in those articles I've seen. He was just saying that financing aspect if very iffy AND that current world IT sector is way to overdependent on LLMs.