Based on a sarcastic comment I made a little bit ago but kept thinking about.

For a long time now (before the current AI bubble, even), the majority of stocks traded have been performed by algorithms using machine learning.

https://en.wikipedia.org/wiki/Algorithmic_trading

Tech companies keep developing AI-powered solutions because it’s a quick way to earn money through stocks. The majority of profit in the stock market right now is coming from AI slop.

https://fortune.com/2025/10/07/ai-bubble-cisco-moment-dotcom-crash-nvidia-jensen-huang-top-analyst/

So, when the majority of stocks being traded are decided by AI, and it just happens that the most profitable investments are likewise boosting AI development, is this essentially AI using the mechanics of capitalism to self-select its own advancement?

  • TranscendentalEmpire@lemmy.today
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    1 day ago

    It might be in the sense that the algorithm recognizes that it’s a new bubble to dump money into for a quick return. But that’s just what the stock market is nowadays. Corporations have cornered the rest of the markets through conglomeration or monopolistic exploitation, and have cut cost as much as possible. There’s not really a lot of ways to keep line going up other than throwing it into a new bubble and hoping you can get out before it pops.

    Investment companies are just running out of places to keep their investments, which is why basically all tech corporations are massively over valued.

    • IronBird@lemmy.world
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      16 hours ago

      that’s where the Fed QE-hyper inflation fiasco comes into play.

      the lines will always go up cause inflation amd devalueing the $ forces them up.

      until people who actually want to spend $ hunt down that liquidity it will stay locked down on someones imaginary goldpile

      • TranscendentalEmpire@lemmy.today
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        8 hours ago

        people who actually want to spend $ hunt down that liquidity it will stay locked down on someones imaginary goldpile

        Can’t do that… That would ruin everything. Just take out a loan against your imaginary goldpile.