The Enterprise AI Show Building the Foundations of the Modern Cloud
14 snips
Nov 26, 2023 This podcast explores the effects of the dotCom bubble burst, the 2008 housing crisis, and the impact on technology markets. It delves into the firing and rehiring of OpenAI's CEO, the conflict within the company, the aftermath of the dotCom bubble, and the evolution of the internet and monetization.
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OpenAI Coup Revealed Governance Fragility
- OpenAI's board firing and quick reinstatement of Sam Altman revealed fragile and unusual nonprofit/for-profit governance.
- Microsoft nearly hired the whole team and 700 employees threatened to quit, showing employee loyalty and investor leverage shaped the outcome.
Low Rates Pushed Investors From Tech To Housing
- Post-dotcom low interest rates pushed capital into housing as a perceived safe asset, shifting investor focus away from tech.
- Interest rates fell from ~7–8% to ~1.5%, making housing the favored growth vehicle while tech remained out of favor.
Fire Sale Fiber Became Cloud Foundation
- The dotcom crash left a surplus of underused fiber optic capacity that later became cheap infrastructure for future players.
- Companies like Switch and Google bought fiber at fire-sale prices, seeding capacity for data centers and later cloud growth.