Here's How the AI Crash Happens
The U.S. is becoming an Nvidia-state.
https://www.theatlantic.com/technology/2025/10/data-centers-ai-crash/684765/
https://archive.ph/ItWnp
Data centers in New Carlisle, Indiana (AJ Mast / The New York Times / Redux)
The AI boom is visible from orbit. Satellite photos of New Carlisle, Indiana, show greenish splotches of farmland transformed into unmistakable industrial parks in less than a year’s time. There are seven rectangular data centers there, with 23 more on the way. Inside each of these buildings, endless rows of fridge-size containers of computer chips wheeze and grunt as they perform mathematical operations at an unfathomable scale. The buildings belong to Amazon and are being used by Anthropic, a leading AI firm, to train and run its models. According to one estimate, this data-center campus, far from complete, already demands more than 500 megawatts of electricity to power these calculations—as much as hundreds of thousands of American homes. When all the data centers in New Carlisle are built, they will demand more power than two Atlantas.
The amount of energy and money being poured into AI is breathtaking. Global spending on the technology is projected to hit $375 billion by the end of the year and half a trillion dollars in 2026. Three-quarters of gains in the S&P 500 since the launch of ChatGPT came from AI-related stocks; the value of every publicly traded company has, in a sense, been buoyed by an AI-driven bull market. To cement the point, Nvidia, a maker of the advanced computer chips underlying the AI boom, yesterday became the first company in history to be worth $5 trillion.
Here’s another way of thinking about the transformation under way: Multiplying Ford’s current market cap 94 times over wouldn’t quite get you to Nvidia’s. Yet 20 years ago, Ford was worth nearly triple what Nvidia was. Much like how Saudi Arabia is a petrostate, the U.S. is a burgeoning AI state—and, in particular, an Nvidia-state. The number keeps going up, which has a buoying effect on markets that is, in the short term, good. But every good earnings report further entrenches Nvidia as a precariously placed, load-bearing piece of the global economy.
America appears to be, at the moment, in a sort of benevolent hostage situation. AI-related spending now contributes more to the nation’s GDP growth than all consumer spending combined, and by another calculation, those AI expenditures accounted for 92 percent of GDP growth during the first half of 2025. Since the launch of ChatGPT, in late 2022, the tech industry has gone from making up 22 percent of the value in the S&P 500 to roughly one-third. Just yesterday, Meta, Microsoft, and Alphabet all reported substantial quarterly-revenue growth, and Reuters reported that OpenAI is planning to go public perhaps as soon as next year at a value of up to $1 trillion—which would be one of the largest IPOs in history. (An OpenAI spokesperson told Reuters, “An IPO is not our focus, so we could not possibly have set a date”; OpenAI and The Atlantic have a corporate partnership.)
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Jobs aren't going away, though specific ones will and many jobs will change radically. There are all kinds of other jobs that need doing, so there will be disruption and dislocation. But ultimately two things will happen:
1) The unsustainable concentration of wealth and income will either come undone by reform or revolution. Reform could lead to things like guaranteed basic income from the huge productivity and profits.
2) There will remain for the foreseeable future (say to the end of 2100) a need for judgment, especially with AI. There will be two broad categories of jobs in the future: high touch and high judgment.
2a) High touch is all about human-human interaction. Live entertainment, turning a patient over in a hospital bed, teach a child a craft. If robots are fixing cars and painting walls, people will want to interact with people. Yes there will be loners ( 
(a little bit)) and withdrawn people with their tamaguchis and their AI pals and AI pets, etc. (not me). But most people like at least some people and that will become valuable and desirable by contrast.
2b) With AI slop and "hallucinations", which will persist even when high level reasoning is integrated, there is and will remain a need to ride herd over AI agents and bots and robots. An AI might develop a plan for accomplishing a goal that involves writing code, but also how the code will interact with people and how it will be sold and marketed etc. All of that will have to be reviewed, tested, adjusted, or aborted, as the case may be.
2c) Beyond judgment, there will always be a need for creativity. People who say that AI can't be creative don't really understand creativity and its wellsprings. However, AI creativity will mainly be thinking inside the box. People can supply outside-the-box creativity beyond judgment.
Yes, it's a bubble. Money chasing money, and the "best outcome" I can see for AI is in specialized verticals, where it's trained on very specific data. And the rest just sediments. "Free AI forever with our phone"
Something that's trained on everything is worth nothing. It has novelty value right now, but not for long.
You might compare it to salesforce. An entrerprise kind of thing. Profitable, but not trillions.
It's holding up an economy in downfall.
Period.
Graphic:
they often have a free option to get people started, interested, learning about it, etc. There are pay versions for professional use.
For both of them, worry about what they do with the data they harvest from you. 
They likely sell it.
Then there are private AI models where they claim your data doesn't leave your enterprise network. I'm not sure how well I trust it but governments and militaries and intelligence agencies use them. These are for pay.
Then there are agentic AI models, which are autonomous robotic processes. That's what does a lot of functions that humans used to do. Companies pay for these.
There aren't any solar panels or wind turbines. All this new technology hooked up to an ancient grid that is also tasked with providing power to other businesses and families. If they're going to do this, they should be required to provide their own electricity or at least, some of it. They don't have to use the giant wind turbines like we see offshore but, multiple vertical turbines that can be small enough to install at any home. As for solar panels that should be a no-brainer. Cover every roof and all available areas surrounding the facility. On top of all that they also use a shit-ton of water so they have to be built practically right next to a river.
Something just tells me that they may be jumping the gun a bit. Counting more money before they actually have it. It seems they're already partying with the good and totally forgetting that the bad is just outside the door waiting to barge in. 
