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Tech is a sector unlike any other – it’s an industry where individuals can turn into billionaires overnight, ideas supersede fundamentals, and leaders are rewarded for showmanship. In today’s Silicon Valley, innovation is crowned and not earned. Venture capitalists and founders are symbiotic. Unprofitable companies are kept alive with injections of capital, gamed valuations, and manufactured hype with the goal of surviving long enough to IPO.
Starting in the early 2010s, Silicon Valley had championed big data as a revolutionary technology that could unearth deep insights, hidden patterns, and innovation from massive amounts of data. Yet the market started to question in the early 2020s if any of these promises had even been real as nearly all consumer and SaaS startups were still bleeding nearly a decade later.
Out of nowhere, ChatGPT was released and AI became Silicon Valley’s next big thing. Every tech company is now an “AI company”, every Fortune 500 needs an “AI strategy”, VCs are only investing in AI startups, and every product is an “AI” product. This is a deep dive into how artificial intelligence is just the latest tale spun by Silicon Valley to sweep prior failed trends under the rug, keep valuations high, and outlook positive.
Before AI, there was crypto, web3, blockchain, virtual reality, big data, IoT, and wearables – all supposedly revolutionary technologies that have never lived up to the hype. In this episode, we’ll dive into the market dynamics that push companies and individuals to jump headfirst into tech trends, how this all started with big data, and why AI is ultimately just another pump-and-dump.
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0:00 Modern Silicon Valley
6:42 Sponsor Break (Kajabi)
8:29 Post Dot-Com Beginnings
17:22 Data-Driven FOMO
28:19 Shovel Economics
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Right now, Kajabi is offering a free 30-day trial to start your business if you go to http://kajabi.com/modernmba
☕ Support Modern MBA on Patreon: https://www.reddit.com/r/modernmba/
💬 Join the Modern MBA on Reddit: https://www.patreon.com/modernmba
🌎 Follow Modern MBA on Facebook: https://www.facebook.com/people/Modern-MBA/61570667949655/
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You forgot NFTs and Crypto
I had to PAUSE when you said “AI is just another Pump & Dump.”
Strong statement, that I’m so excited to hear more about. Being in some spheres where AI is revered, I’d love to send this video to some peers in my network. 😂
Lol what? Mobile games revenue in 2023 was 49% $89.9B, console was 28% $52.4B, and PC 22% 39.6B… of a total of $183.9B. Mobile games dont need a huge dev team, years of developmemt, or really any capital investment. They are juat stupid profitable. Algorithims, Big Data, and AI are all likewise extremely profitable and interlinked.
The current gen LLMs are fast and give a surprisingly good response to basically anything. Its beyond a smart high schooler, I'd go so far as to say its like talking to someone who majored in that field. Still there are errors, but being able to ask any question and getting back an accurate response is cool. It'll only improve and get cheaper in the months/years to come. Eventually the default will be AI assisted generated content, like how we use computers/machines/tools to enhance our abilities with everything else.
big data and AI aren't the same. I found big data (called data mining around 2000) was bs as a McKinsey consultant. AI is scary and will negatively affect humanity over the decade or so.
Seems disingenuous to say that AI is completely a hoax. Of course there are many AI companies that will never generate value, but just like web 2.0, big data, cloud, smart watches, etc etc, all those technologies have some winners. Although you are right in saying the vast majority are losers.
The worst thing about this hoax is that it's currently floating the entire stock market.
When the hoax is revealed, and that bubble bursts, the economy is done.
5:00 Big Data didn't die, AI is built on Big Data.
AI is a game changer… Check out our new platform and see the new technology.
AI looks more like the dot-com bubble to me, that the market will become huge but that basically only a few tech giants will survive. Small and medium size companies that use GPUs from Nvidia, that's amateur league, and companies like Google and Microsoft who use their own AI chips I predict will survive. Unless China eats their lunch too.
You said the word data WAY too many times
Blood from a stone…
Who was it that said, "the more things change, the more they stay the same"? Welcome to the hype-factory that is capitalism…
This video seems like a rehashed one on the hype cycle and failings of Big Data, with about 15 lines sprinkled in saying "…and AI is just like that"
Great video. Thanks. Although i couldn't see in the grub hub section the losses you mentioned. Only one in 2019
Dot com, blockchain, AI… what will be next
Literally none of this marketing analytics song and theatre would be necessary if the companies just sold good products
In small companies, the salaries of some knowledge workers, including programmers, are already being cut. Companies are downsizing teams, letting go of the most expensive employees. The revolution is real.
I used to work for amazon, and some of their warehouses run solely off the cloud, with 0 backups on hand and no on-site servers. Whenever crap hits the fan, the whole warehouse shuts down until they can recover or figure out what went wrong. If a deployment goes wrong everything gets shut down as well. This is why relying on the cloud is a very bad omen, and can spell disaster in some industries.
An MBA dumping on tech bros for the hype trains is the definition of the kettle calling the pot black. MBAs and managers in general are the driving force of this nonsense. The vast majority of engineers always though big data is complete nonsense, but then some head of department comes to you with this buzzword salad. He went to a conference and heard a bunch of nonsense, and now you have to work to make that nonsense work because the fool has no idea what he's talking about. If companies actually hired some competent engineers in leadership roles, we wouldn't have this problem. But it's like there is an aversion to things like that.
AI has helped me alot with code refactoring and templating. It's awesome.
I absolutely love the reading of CEO quotes drinking their own Kool aid immediately followed by their ruinous financial performances. Excellent script writing and structure. I was laughing louder with each example.