Jeff Guo

Well, it's adult humans, actually, who enjoy labubus.

Okay, let me make clear.

Economists do not care if people spend money on frivolous stuff that seems silly.

As long as those people value that thing a lot, right?

Then it's not misvalued.

It's not a bubble.

The problem is when people are buying LaBooBoos, not because they love LaBooBoos, but because they think these LaBooBoos are going to be worth more later on.

Like, they're buying them as an investment.

In that case, when the bubble pops, what do we get?

A bunch of LaBooBoos that nobody wants.

Right.

OK, so there are two big questions here.

Question number one, if AI is a bubble, how bad is it going to be if it pops?

Obviously, investors will lose a lot of money.

One economist told our friends at The Indicator that an AI crash could erase $35 trillion from the global economy.

People will lose their jobs, they'll be spending less money, and the consequences will ripple out and affect all of us.

Okay, and now for the second question.

If AI turns out to be a bubble, how bad is it that we are spending all this money right now training AI and building these AI data centers?

Because if this AI bet doesn't pay off, all those billions of dollars, they could probably be spent better right now, you know, researching drugs or building solar farms or buying cat treats, right?

Like computers are not labooboos.