Here's Why 99% of AI Companies Will Be Dead in 18 Months

When does the government ever get to invest in anything that's profitable? The thing that the indicator for me was that it was a bubble and that it was probably something we should be concerned about is there's been all these conversations about how the government is going to own some open AI and that the government is going to get access to it or that the government may need to bail them out. I mean, when does the government ever get to invest in anything that's profitable? It's never happened in my lifetime that the government gets to invest in anything that's profitable. Everything that the government invests into is because they're bailing it out, whether it's the banks or it's, you name the industries that we've had to bail out over the last 100 years, everything is just a bailout. And I think the AI is the same. And what you're talking about is these swaps, these huge companies just swapping for their books to create more profit and then maybe moving that asset away. It's not the asset that's really important. These companies are really not important. And I look at AI more than anything. I just think it was a way to gather information and compete with Google, basically. That's the way I look at it, is that you're putting all this and you forget that they're just going to sell your information down the road the way Google is. It's just another idea of Google. It's another search engine to grab your information and to use it. And they've said they're going to use it in whatever way they want. You have to be careful of the information that you're putting in there because it will be readily available to companies for sale or lawsuits or anything. All these things will be available. And so you have to think about those things. And I think that what's happening right now, and we're coming into the summer, we have a new Fed share coming in, gold and silver have kind of went into a range. We're in this new range for gold and silver. And I've seen people say that gold's going to go back to 2000 or any of these things that could potentially happen. And what I look at is, is this the greatest buying opportunity that we've seen? And I'll lay out some reasons that it could be. I think number one that people forget is that you buy gold as insurance against what's happening with the dollar. There's no indication that the dollar will get stronger. There's been nothing we've done in terms of the government or spending or anything. There's nothing Jacksonian about what we've done with the strengthening of our currency. And I think it's an important thing to think about in the 250th anniversary of our country, that we founded this country partly with the idea to protect ourselves against the politicians and the way that we protected it was making our currency in gold. That was a big part of what we tried to do. Now we're sort of in a position where the politicians, they do have too much. They have too much control over what they can do and how much they can spend. And we have no stopgap in place. I mean, once we went off the gold standard in 71, we allowed this free spending enterprise to happen. So we will continue to devalue our currency. Now, will that push the price of gold up to 8,400? As I've seen a lot of people talk about as the next sort of price, when it will get to 8,400, I don't know when it will get there. But if you believe that these things will continue, if you believe that we'll continue to devalue our currency, whether it's through interest rates, whether it's through spending, any of these things can happen, then gold should do better. Also, just what are central banks doing? Central banks are continuing to buy gold. They're going to look at $4,500 gold as an absolute buying opportunity, and they're going to continue to buy it in droves. And they did in the first quarter. They continued on the same buying streak. They're still going to get to 1,000 times this year, which is where they've been for almost five years in a row. So they're continuing to buy gold is circling around and trying to figure out what is the safe investment outside of gold. And they're diversifying in maybe a little bit of bonds or other things, but they're still making gold a part of that story. So I think we're in a range, and I'll say this, until we figure out our spending, until we get our debt under control, gold will be moving in a stair step. It will continue to go up, hit numbers, drop down a little bit, and then it'll create new highs. And I think for people that don't realize that they can protect themselves this way, and it's a hedge against the other things that are happening, because there is indicators that Bank of America says we're going to be in a bear market. There's probably some 30, 40, 50X opportunities out there that people are going to invest into. Some of these AI companies could go to the moon. But if you don't want to do that, you don't want to take those risky bets. How do you protect yourself day-to-day in your buying power? Gold is the answer to that story. And I think that that's something that people should remember, is that they're going to be fed information of these opportunities that feel like they have to win, and they're 100% going to guarantee. But if you look back the last 20, 30 years, you look at companies that have been in the S&P that are no longer there, or in the NASDAQ and are no longer there. These are all companies that people thought would be around for 100 years, and many of them are no longer there. Those are the safer of the bets. The more speculative ones is what we're being fed. All these stock market opportunities that we're getting fed, that these are going to guarantee to double, and they're going to be trillion-dollar companies. It's like, sure, maybe they are. Maybe you bet 3% to 5% in some of these. But the majority of your money, you don't want to lose. You know the numbers. If you lose 40% or 50%, how long does it take you to recoup that? Most people today don't want to do that. That's why I think sometimes you got to do the safe thing and the slow thing, and be smart, and avoid the speculative noise that's happening out there. I couldn't agree more. I'll pull up this graph just because I mentioned it. I want to just highlight this. This is someone who did an overlay of the current market, the S&P, versus the S&P heading into the dot-com crash. If you look at this, this right here, what you're seeing currently, this is our current S&P. Now watch what happens when it's overlaid. It's almost an exact mirror. Not to say that the exact thing is going to happen, because you don't know. But that to me is pretty in your face, looking at that information. I think that, again, if you look at what the dot-com crash was, I was only a kid at that time. I remember seeing my dad go through losing most of his retirement 401k because he had all his stocks in lucent technologies. In a lot of ways, it's the same thing. It's the same speculation. Hey, there's this new technology that's coming out, all these dot-com websites, all this money gets thrown at it. I think the AI bubble is just 2.0, but everything, the money supply, it's almost like we've inflated every single risk so much, even since, say, the early 2000s, where a small correction now, or even a proper correction, is a pretty seismic change to the global economy. There's a lot going into that. I'll let you respond to that. I have a few other questions for you, though. Well, remember Y2K? Remember that Y2K? It was going to shut down everything in 2001, and the computers couldn't figure out the math, so that was the thing that happened then. But I agree with you in the idea that I think what people don't realize is that a lot of the AI companies and a lot of these things, they're in the R&D phase that's being funded by investors all over the world. Then it's like they're blanketing hundreds or maybe thousands of these gambles, which is what a lot of these private equity people do, is they're spacing money out over all of these companies and all these gambles so that 1% maybe work. Well, the problem with you and I is that once the data comes out and 99% don't work, which is going to happen in the next 12 to 18 months, because eventually, as an investor, you and I are in business, so we know this. There's eventually a point where you can't raise money anymore if you're not profitable. Luckily, our businesses are, so if we wanted to raise money, we could. But there is a point where they just can't raise any more money for R&D. That's where things fall apart. And I believe there will be a point in the next 12 to 18 months or sooner where people will just stop funding because they can't see a return. And if they can't go public and they can't get people to buy into the idea of what that company is doing, they will fall apart. And I think a lot of these, I think 99% of these companies will fall apart. And I think that's what we're sort of racing. The same thing happened in 2000, in the early 2000s. There was all these ideas. The internet was really starting to explode, but it was like every idea under the sun was out there. And when everything's moving up, you have the ship rising, everything kind of goes up for a while, right? Every idea seems good and every idea has some validity because they haven't proven it or not proven it. We are having a cultural shift in the change of way we do business, the way that we get information. It's all happening right now. But at the end, we will determine how we're doing it. And like you said, with AI and how the information's coming out, eventually there'll be a point where either we realize that the AI is not helping us or it's not doing everything we needed and the usage will drop or we'll go in a different direction. I mean, even Google now is trying to replicate what open AI is doing, right? They're going to eventually be able to do it in Google too. So I think that's the thing that people need to realize is that a lot of what their stock market has grown has been the idea and the R&D phase of what these companies are building. And then once a lot of these companies determine that they can't build it or it's not successful, or we've even seen where companies using AI have gone back and they just went back to humans because things didn't work. Once all that happens, those companies go to zero because they don't actually make anything. They're not necessities if they can't fulfill the idea. And that's the thing that I look at is what's going to last? What's going to survive? Gold is necessary. They need it. And I don't know if we talked about this, but the most fascinating fact I think this year is that the family wealth in India has $5 trillion in gold, more than every central bank combined. People ask me, what's the issue with gold? Why aren't more people? It's not a world problem. It's a West problem. It's a cultural problem. It's a cultural problem. The East knows, India knows $5 trillion in gold. And these are not institutions. This is families. Now there's some super wealthy families. But what I'm saying is that across that country, they understand the value of gold. Gold has also become the number one reserve asset in the world for central banks too. So it's like behind the scenes, people are buying this because they know that this will be here when the .com and the AI bubble and everything goes apart. This will still be there and you're not going to lose everything like you can in a lot of these other things. And I think that's the that people need to realize is that the scary thing is, and they talk about it all the time, is that people love to invest into the stock market right now. They love to invest. I have financial advisor friends. They're like, we're busier than we've ever been. I'm saying new money? Yeah, new money. They're pulling money from everywhere. Why? People like to buy when things are up. They think in their head that they're going to get that wealth that's already been created. The wealth that people have made in the stock market was put in 10 years ago. It's not today. So I think that's the thing that people need to realize is they need to be careful that they're throwing good money potentially after bad if a lot of these things kind of shake out the way that I think would pay off. If you could go back in time and buy oil before the world relied on it, would you? Of course you would. Anyone would. So why aren't you buying silver right now? You see, the people who recognized oil early didn't just make money. They got ahead of one of the biggest economic shifts in history. And today, a similar opportunity is unfolding with silver because silver is a lot more than just a precious metal. It's a critical resource used in solar panels, electric vehicles, defense systems, AI infrastructure, and even these massive data centers that are powering our digital world and the surveillance grid. So while demand keeps growing, it's actually still affordable enough that the average American can start accumulating it right now. And that's why investors are turning to silver to protect against inflation and own one of the world's most important strategic resources. Don't be the person who looks back in 10 years and says, I saw it coming. I just didn't act. I'm sorry. So visit goldwithseth.com and learn just how easy it is to own physical silver. Again, that's goldwithseth.com. And here's something a little extra. If you just mention my name, when you reach out to Noble Gold, they're going to send you a one-tenth ounce of gold coin just as a thank you when you open a new qualified account. So again, that's goldwithseth.com.