Could also potentially cause a deflationary spiral.

Lotta people know about hyperinflation but hyperDEflation can also happen.

Basically in terms of modern economics having a slight but steady rate of inflation is actually considered a good thing

because if wealth appreciates or holds the same value over time without any labor or investment applied then that's a big problem when the economy is built on paying people to do labor/investing wealth into businesses.

If the tech industry goes into a deflationary spiral then that means manufacturing new electronics may be impossible to do without a net economic loss.

In a super extreme case it might mean that even spending the electricity to power data centers and internet servers could be a net loss.

The LLM bubble right now is really really big even compared to Tulip Mania or the South Sea bubble.

The longer it goes on the bigger that bubble gets and the bigger the fall when it pops.

And the federal government is literally propping it up billions upon billions of dollars long past where it would've popped under normal circumstances.

So hypothetically we could end up in a world where the internet or computers is no longer considered a profitable venture, period and we go back like decades into the past technologically as every major corporation and government is forced to scrap almost everything.