Eat My Shorts AI Bubble Ready to Pop

• Middle East sovereign wealth funds could pull back on AI investments impacting the boom.
• Overinvestment and speculation in AI mirror the dot-com bubble.
• Data center projects and tech companies face funding risks due to geopolitical tensions.
• Family offices often make direct investments without adequate expertise, leading to potential losses.

Middle East Money Running Away

So, check it – some brainiac named Jack Selby over at Thiel Capital is saying the Middle East might pull back on their AI investments. Turns out, these countries are dropping a whole lot of dough on AI, like a quarter of all the money going into it globally over the next five years. But if things get hairy with that Iran situation, they might need that cash to fix stuff back home instead of funding robots and supercomputers. I say, tough luck for the nerds.

Data Centers Going Bust

This Selby guy thinks if the Middle East backs out, it's gonna mess up data centers big time. He figures these countries are already canceling deals left and right, probably because they got bigger problems than making sure your TikTok videos load fast. Companies like Oracle, Nvidia, and Cisco are building a huge AI campus in the UAE, but if the money dries up, those plans could go kaput. Speaking of troubles brewing, Southwest Airlines Turbulence Ahead: Expects Lower Earnings. Seems like turbulence is everywhere these days, both in the air and in the world of tech funding. This means less data for me to download pranks from, D'oh

AI Bubble Popping Soon

Selby's also ranting about how AI is turning into another dot-com bubble. Everyone's throwing money at it without thinking, like when Milhouse tries to buy every comic book in Springfield. He says these AI companies are spending over $700 billion this year. When this AI bubble bursts, it will make the dot-com crash look like a lemonade stand closing down, and who knows what could happen.

Google Was the Real Deal

He brings up Google as an example. Back in the day, everyone was drooling over Ask Jeeves and AltaVista, but Google came along and ate their lunch. Selby thinks the same thing could happen to today's big AI players. Maybe some kid in his garage is already working on the next big thing. I wonder if I can convince Lisa to build it for me.

Arizona is the Future

Selby's got a plan. He's starting a new fund to invest in tech companies outside of California, New York, and Massachusetts. He thinks all the smarty-pants are too busy fighting over scraps in those places. "Eat my shorts" to those big shot investors in the coasts I say. He reckons there are way better deals in the other 47 states. Maybe I should move to Arizona, too. More space to skateboard.

Family Offices Messing Up

This dude also says family offices are screwing up by making direct investments without knowing what they're doing. Apparently, seven out of ten of them are throwing cash at private companies without going through a fund. Selby understands why, since a lot of these funds are basically "zombie VCs" that aren't making any money. But he thinks these rich folks are just trying to look cool at cocktail parties, like that Greek shipping dude investing in rockets just to have something to talk about.