The AI bubble is bursting and people are realizing that investment in tech is getting increasingly more stupid. I'm going to throw a party about this.

Post made 31/7/26

I woke up this morning to discover that South Korea's AI bubble just burst. Words cannot explain the joy I am experiencing.

I am no economist nor am I in any way, quite literally or otherwise, invested in the tech sector. I would rather rip my skin off than discuss it. Fortunately, I can discuss its shortcomings and downfalls happily.

For those who don't follow economics heavily, there are two main stock market indexes in the US: the S&P 500 and the Dow Jones Industrial Average. Both are used to paint a general picture of the American economy at any given point, but a key difference between the two is that the S&P has more AI/general tech stocks than the Dow Jones. According to the S&P and other tech and economics-related sources I have found, stocks in tech-based companies such as Google and Nvidia are decreasing.

These tech companies have invested so much money into AI. Some tech companies have asked the US government to buy stock in order to save them, meaning that we as taxpayers will have to bail them out eventually (they have privatized the profits and socialized the losses). Google alone has lost nearly 6 billion dollars in its first ever negative cash flow quarter. AI has generated about 25-50 billion dollars in revenue, which is miniscule compared to the HUNDREDS of billions, if not TRILLIONS, that has been invested into AI in recent years. Many of these companies give money to Nvidia, the company that is the driving force behind the AI boom. Once they go under, Nvidia, the only company truly making money off of this venture, will also go under.

Only about 25% of AI initiatives even delivered a return on investment, or a ROI, in the past few years. Some companies are even selling the data centers in order to maximize profits. A few days ago, Meta did this with its El Paso data centers, selling 80% of them to BlackRock. Companies have replaced their workers with AI in the past; however, companies like Ford have realized that AI is shit and cannot return the investment to shareholders. Thus, Ford has started to bring back their senior engineers that they attempted to replace. So fortunately, we may see an uptick in hiring numbers soon, although it is hard to gauge how the entirety of the economy will react. Again, I am not an economist. I just hate AI.

South Korea got ahead of us in the AI bubble. Their main stock market index, the KOSPI, grew rapidly and then absolutely tanked this week; this month showed its largest surge since October of 2008. South Koreans all over the internet were posting videos praying to the KOSPI, begging for their investments to be returned; others posted pictures of their struggle meals. The KOSPI made somewhat of a recovery due to chipmaking and semiconductor stocks increasing, thankfully. But regarding AI, it reveals a pattern, showing that investors are no longer willing to contribute to a "boom" that returns very poor results. Over 50% of the KOSPI represents AI-centered companies.

So. The bubble is finally starting to burst. What happens now?

Answer: a truly bad recession.

M.A.F.C., July 31st, 2026.

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