If the AI bubble does burst, taxpayers could end up with the bill (opens in new tab)

(phys.org)

33 pointsachristmascarl4mo ago10 comments

10 comments

It seems we would come to the realization the AI products do not work as well as advertised and the bubble will slowly leak air. This is different from the 2008 liquidity issues that were immediate. I worry about the tax breaks cities, counties, and states gave to the data centers. Long after the hardware is removed from the empty data centers, how long it will take to repurpose the buildings.

simianwords4mo ago

What tax breaks? I’m not aware of any.

whobre4mo ago

When, not if.

simianwords4mo ago

How exactly would tax payers end up with the build? Literally everything into the bubble was private capital like SoftBank, Microsoft.

Big players subsidising AI in hopes they can make profit later. Same as with Uber.

So why is it tax payers who would end up with billions? It’s pretty clear that if bubble bursts it is Microsoft, SoftBank etc that would lose the most money.

zippyman554mo ago

Look at sports stadiums. Cities think they need them and cut huge tax breaks for the teams. Then the Oakland/LA/Oakland/Vegas Raiders holds the cities hostage. So, I’m thinking the infrastructure buildout, zoning, water, electricity capacity upgrades, not to mention tax breaks to entice movement to the location are greatly subsidized by taxpayers. I also wonder if after the blowup if the water and power capacity can be bundled and sold similar to the water rights in many parts of Southern California.

simianwords4mo ago

What tax breaks have already been applied?

tim3334mo ago

I can't see a taxpayer bailout of AI companies. However a lot of stock market value that ordinary peoples savings have gone into would evaporate.

hollow-moe4mo ago

s/could/will/

bigbadfeline4mo ago

> If the AI bubble does burst, taxpayers could end up with the bill

Um, scientifically speaking, burst or no burst, the general population including the taxpayers will end up with the bill.

testing223214mo ago

* in the USA, where socialism is only for the rich.

j / k navigate · click thread line to collapse

10 comments

zippyman554mo ago

simianwords4mo ago

What tax breaks? I’m not aware of any.

whobre4mo ago

When, not if.

simianwords4mo ago

How exactly would tax payers end up with the build? Literally everything into the bubble was private capital like SoftBank, Microsoft.

Big players subsidising AI in hopes they can make profit later. Same as with Uber.

So why is it tax payers who would end up with billions? It’s pretty clear that if bubble bursts it is Microsoft, SoftBank etc that would lose the most money.

zippyman554mo ago

simianwords4mo ago

What tax breaks have already been applied?

tim3334mo ago

I can't see a taxpayer bailout of AI companies. However a lot of stock market value that ordinary peoples savings have gone into would evaporate.

hollow-moe4mo ago

s/could/will/

bigbadfeline4mo ago

> If the AI bubble does burst, taxpayers could end up with the bill

Um, scientifically speaking, burst or no burst, the general population including the taxpayers will end up with the bill.

testing223214mo ago

* in the USA, where socialism is only for the rich.

j / k navigate · click thread line to collapse