Understanding the AI Bubble

Current discussions suggest that the AI industry may be experiencing a bubble driven by hype and excessive investment. This situation resembles historical economic bubbles, notably the dot-com bubble, where many companies were overvalued without sustainable business models. The rapid influx of capital into AI technologies seems disproportionate to their practical utility, raising concerns about the long-term viability of many startups. As history teaches, bubbles often result in significant financial losses when the hype subsides, leaving behind only those companies that built a solid foundation.