Lily Jamali, a BBC technology reporter, and Paul Kedrosky, a partner at SK Ventures, dive deep into the dynamics at play in the AI industry. Lily explains how the rapid escalation of AI investments creates a bubble, fueled by hype and massive valuations. She highlights concerns about market concentration and the potential for significant financial losses if it bursts. Paul adds a layer, discussing excessive capital spending on infrastructure that raises systemic risks. Together, they explore AI's impact on the economy and the long-term ramifications of an eventual bubble burst.
