I mean, alternately wrote:
Also on the other hand: "I believe that the artificial intelligence boom — which would be better described as a generative AI boom — is (as I've said before) unsustainable, and will ultimately collapse. I also fear that said collapse could be ruinous to big tech, deeply damaging to the startup ecosystem, and will further sour public support for the tech industry.
The nature of venture capital incentives results in short-term overexuberance that aspirationally overestimates results in the short term but underestimates long term societal value, so I would very much expect a crash at some point like the dot com crash, but just like the preceding dot com boom that resulted in the billions of dollars of fiber infrastructure and end-to-end consumer connectivity leading to transformative societal outcomes in the aughts and beyond, you can reasonably expect the data, compute, consumer familiarity and buy-in, and R&D know-how “infrastructure” pumped into gen AI to continue to mature and add significant value.
It’s not at all clear why the crash would be much more “ruinous” or much more damaging to the startup ecosystem than past crashes like when Nasdaq lost 78% of its value. Gen AI value and utility can be measured at shorter timescales compared to the “build it out and they will come” mentality back then for Internet infrastructure where a significant fraction of the population had to be Internet-connected and Internet-comfortable before value became compelling. This hype difference is also manifest in the high but not outrageous P/E ratios of the big tech companies now compared to the late 90s.
