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.
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.
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.
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.
What tax breaks? I’m not aware of any.
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.
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.
What tax breaks have already been applied?
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.
When, not if.
s/could/will/
> 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.
* in the USA, where socialism is only for the rich.