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When the AI Bubble Pops: Layoffs, AI Winter, and What Comes Next

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Big Tech is pouring hundreds of billions, maybe trillions, into AI, but is it actually delivering real value… or are we watching the largest tech bubble in history inflate in real time?

In this video, I share a true story from inside a company-wide AI hackathon at a major Big Tech firm, one that had already invested billions into frontier AI models, massive GPU infrastructure, and large language models. What followed was a revealing experiment in how difficult it is to turn cutting-edge AI into meaningful business value. My elite hackathon team built a working AI customer support agent using Retrieval Augmented Generation (RAG) that could resolve 90% of support cases. Sounds impressive, right? But a blunt conversation with a senior business leader exposed an uncomfortable truth: the remaining 10% of problems consume over 90% of customer service effort. That’s when it hit me, AI hype doesn’t automatically equal ROI. Asian Dad Energy

From there, I zoom out to the bigger picture: • Why most AI products today are burning cash • How Big Tech is masking weak AI returns to boost stock valuations • Why companies like OpenAI may be far more fragile than diversified giants like Google • Parallels between today’s AI boom and the dot-com bubble—on steroids I also explore what an AI crash could realistically look like, including layoffs, an AI winter, data center fallout, financial contagion, and broader economic risk. And most importantly, I share practical strategies software engineers can use to protect themselves and their families if things go south. Is this inevitable? Maybe. Maybe not. These are thoughtful, grounded musings from someone who’s seen the hype from the inside—and lived to tell the tale. Watch, think critically, and decide for yourself.

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