Why the AI Bubble Needs to Pop

Despite what everyone says, I.E. the tech overlords, we are absolutely living in an AI bubble. From rising custom PC component costs and unicorn availability, to homeowners taking on the additional resource costs from data centers, AI is running through every bit of the world economics and not in a good way. Unless you are an investor who has millions riding on this, which I am assuming you reading this aren’t, you are probably waiting for the inevitable pop of the bubble. But why, you might ask? Well, let’s discuss that today.

Computer Components becoming Unicorns (And Expensive Ones)

Computer components have been hit hard across the board in the custom PC market; specifically, memory and SSDs. It won’t be stopping there either, unfortunately. With talks of Nvidia GPUs slowing down so they can allocate memory chips to the building of the almighty data center, we are sure to see those slow to a crawl in terms of availability as well as cost as much as a home soon. It isn’t just custom PC components and computers that will take a hit. Anything that requires memory, and almost everything we use these days does, will slow in terms of manufacturing and rise in terms of cost. Why would the bubble popping help this? It is simple: companies would be stuck with excess components that are either returned to manufacturers from the AI lords, or the AI lords will liquidate and that means beautiful pricing and tons of options to choose from.

However, it does come at a downside (if you want to look at it like that) and that would mean causing issues on a manufacturing level. If they have excess stock, they aren’t going to push to innovate or produce. Meaning manufacturing companies would have to lay people off if they didn’t have work to provide them with. The harsh reality is, with the bubble popping it will do much more damage in the short term, but be fruitful for everyone on the long term.

Not Tech Related, but Resource Costs

While a lot of focus is on the computer components world, there is a grim reality of home owners and small businesses taking on additional costs on their resource bills due to these companies and states passing the mass consumption costs. While people are already struggling as is, this is the bright red cherry on top. The bubble popping would help loosen those costs being passed on in areas where that is the case. In brighter terms, there is reports of companies ceasing or postponing the building of the data centers due to a multitude of reasons (fake money circle, let’s be real).

Economic Reset

While we are a systems integrator working tirelessly to procure products for your customer PC builds and custom PC solutions, we are humans at the end of the day. We feel the economic strain just as much as the next person. With the bubble popping, it would absolutely destroy the stock market, and we would see a crash of unprecedented levels. While, yes, it would hurt all of us tremendously, it would also open the door to a much-needed economic reset. Everyone thinks it is fun to ask Chat GPT dumb questions and ask Sora to create unrealist AI slop, but what people have failed to realize is these are the products that are causing much of the issues today. Less jobs. Layoffs. People living paycheck to paycheck. I could go on and on. The point is it needs to pop for the benefit of society.

On the bright side, I see more and more each day, people refusing the use of AI and denouncing it as “the next savior of man-kind.” For so many things, it starts and ends with us as a society. If we take a stand, in the end, it is going to hurt the tech companies trying to inject AI into every little thing we do. Just look a the numerous articles across the board that came out last week. It is starting to pop, and we are a major factor of that.

While the bubble is starting to pop, we do have a long way to go before we see any meaningful changes in many aspects where AI has caused havoc. Keep pushing and fighting these changes and I assure you we will see glorious component prices sooner rather than later.