A Long Time In Finance The Internet, AI, And the Madness of Crowds
Mar 8, 2024
Brian McCullough, an internet historian and venture capitalist, dives into the chaotic world of the dot-com bubble and its lessons for today’s AI boom. He discusses how market narratives can inflate stock valuations and why the impacts of innovation often overshadow necessary infrastructure. The conversation highlights Apple’s comeback from near-collapse, the evolution of Microsoft under Satya Nadella, and how tech giants exploited the aftermath of the bubble. McCullough’s insights bridge the past and present, revealing what the frenetic tech landscape can teach us.
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Dot-Com Bubble's Lasting Impact
- The dot-com bubble was more than irrational exuberance; it introduced the scale of a global digital market.
- Although many companies failed, the fundamental premise of vast addressable markets is still valid today.
Infrastructure Bubble Built Internet Backbone
- Infrastructure and consumer internet bubbles happened concurrently with some companies failing due to being ahead of their time.
- The overbuilt internet infrastructure laid during the dot-com era enabled giants like Google and Amazon to thrive later on cheaper capital costs.
Apple's Near Death Experience
- Apple was on the brink of bankruptcy in 1997 before Steve Jobs' return turned things around.
- The iPod launch in 2001 marked their rise as a tech juggernaut, starting their transformation.
