[ChuckMcM]

Yup, I've been here before. Back in 1995 we called it "The Internet." :-) Not to be snarky here, as we know the Internet has, in fact, revolutionized a lot of things and generated a lot of wealth. But in 1995, it was "a trillion dollar market" where none of the underlying infrastructure could really take advantage of it. AI is like that today, a pretty amazing technology that at some point will probably revolutionize a lot of things we do, but the hype level is as far over its utility as the Internet hype was in 1995. My advice to anyone going through this for the first time is to diversify now if you can. I didn't in 1995 and that did not work out well for me.

[safety1st]

The comparison to the dotcom bubble isn't without merit. As a technology in terms of its applications though I think the best one to compare the LLM with is the mouse. It was absolutely a revolution in terms of how we interact with computers. You could do many tasks much faster with a GUI. Nearly all software was redesigned around it. The story around a "conversational interface" enabled by an LLM is similar. You can literally see the agent go off and run 10 grep commands or whatever in seconds, that you would have had to look up.

The mouse didn't become some huge profit center and the economy didn't realign around mouse manufacturers. People sure made a lot of money off it indirectly though. The profits accrued from sales of software that supported it well and delivered productivity improvements. Some of the companies who wrote that software also manufactured mice, some didn't.

I think it'll be the same now. It's far from clear that developing and hosting LLMs will be a great business. They'll transform computing anyway. The actual profits will accrue to whoever delivers software which integrates them in a way that delivers more productivity. On some level I feel like it's already happening, Gemini's well integrated into Google Drive, changes how I use it, and saves me time. ChatGPT is just a thing off on the side that I chat randomly with about my hangover. Github Copilot claims it's going to deliver productivity and sometimes kinda does but man it often sucks. Easy to infer from this info who my money will end up going to in the long run.

On diversification, I think anyone who's not a professional investor should steer away from picking individual stocks and already be diversified... I wouldn't advise anyone to get out of the market or to try and time the market. But a correction will come eventually and being invested in very broad index funds smooths out these bumps. To those of us who invest in the whole market, it's notable that a few big AI/tech companies have become a far larger share of the indices than they used to be, and a fairly sure bet that one day, they won't be anymore.

[lizknope]

I started working in 1997. Cisco was one of our big customers so I knew a lot of engineers there. Cisco stock hid $80 in 2000. In 2002 it was at $10.

https://finance.yahoo.com/quote/CSCO/

I knew people who purchased their options but didn't sell and based on the AMT (Alternative Minimum Tax) had tax bills of millions of dollars based on the profit IF they sold on the day they purchased it. But then it dropped to $10 and even if they sold everything they couldn't pay the tax bill. They finally changed the law after years but those guys got screwed over.

I was young and thought the dot com boom would go on forever. It didn't. The AI bubble will burst too but whether it is 2026, 27, 28, who knows. Bubble doesn't mean useless, just that the investors will finally start demanding a profit and return on their investment. At that point the bubble will pop and lots of companies will go fail or lose a lot of money. Then it will take a couple of years to sort out and companies have to start showing a profit.

[autoexec]

I have zero doubt that AI will eventually make many people lots of money. Just about every company on earth is collecting TBs of data on everyone and they know they're sure they can use that information against us somehow, but they can't possibly read and search through it all on their own.

I have quite a few doubts that it'll be a net positive for society though. The internet (for all of its flaws) is still a good thing generally for the public. Users didn't have to be convinced of that, they just needed to be shown what was possible. Nobody had to shove internet access into everything against customer's wishes. "AI" on the other hand isn't something most users want. Users are constantly complaining about it being pushed on them and it's already forced MS to scale back the AI in windows 11.

[RoddaWallPro]

What do you mean exactly by "diversify"? Money/investment-wise?

[toomuchtodo]

Sell the risky stock that has inflated in value from hype cycle exuberance and re-invest proceeds into lower risk asset classes not driven by said exuberance. "Taking money off the table." An example would be taking ISO or RSU proceeds and reinvesting in VT (Vanguard Total World Stock Index Fund ETF) or other diversified index funds.

Taking money off the table - https://news.ycombinator.com/item?id=45763769 - October 2025 (108 comments)

(not investing advice)

[kalap_ur]

How do you diversify now? I presume you don't refer to stock portfolio, do you?

[ChuckMcM]

Stocks are fine for diversification, just stocks that have a different risk factors. So back in the 90's I had been working at Sun then did a couple of startups, and all of my 'investment' savings (which I started with stock from the employee purchase plan at Sun) were in tech of one kind or another. No banking stocks, no pharmaceutical stocks, no manufacturing sector stocks. Just tech, and more precisely Internet technology stocks. So when the Internet bubble burst every stock I owned depreciated rapidly in price.

One of the reasons I told myself I "couldn't" diversify was because if I sold any of the stock to buy different stock I'd pay a lot of capital gains tax and the IRS would take half and now I'd only be half as wealthy.

Another reason was my management telling me I couldn't sell my stock during "quiet" periods (even though they seemed too) and so sometimes when I felt like selling it I "couldn't."

These days, especially with companies that do not have publicly traded stock, that is harder than ever to diversify. The cynic in me says they are structured that way so that employees are always the last to get paid. It can still work though. You just have to find a way to option the stock you are owed on a secondary market. Not surprisingly there are MBA types who really want to have a piece of an AI company and will help you do that.

So now I make sure that not everything I own is in one area. One can do that with mutual funds, and to some extent with index funds.

But the message is if you're feeling "wealthy" and maybe paying your mortgage payments by selling some stock every month, you are much more at risk than you might realize. One friend who worked at JDS Uniphase back in the day just sold their stock and bought their house, another kept their stock so that it could "keep growing" while selling it off in bits to pay their mortgage. When JDSU died they had to sell their house and move because they couldn't afford the mortgage payments on just their salary. But we have a new generation that is getting to make these choices, I encourage people in this situation to be open to the learning.

[bane]

The blockchain hype bubble should probably be pretty near in memory for most people I would suspect. I thought that was a wild, useless ride until Ai took it over.

[anthonypasq]

no one has ever used blockchain. consumer ai apps have billions of MAUs how is this even remotely comparable dude

[magic_hamster]

> at some point will probably revolutionize a lot of things we do

The revolution already happened. I can't imagine life without AI today. Not just for coding (which I actually lament) but just in general day to day use. Sure it's not perfect but I think it's quite difficult to ignore how the world changed in just 3-4 years.

[missingdays]

It makes me sad trying to imagine what it's like to not being able to imagine life without AI

[vor_]

That's just so strange to me. In my experience, it hallucinates and makes things up often, and when it's accurate, the results are so generic and surface level.