Mike Andes compares current AI enthusiasm to the dot-com bubble, arguing that while corrections happen, the technology itself survives and thrives long-term. Hype cycles have repeated for centuries and will likely continue with AI.
How do you think about this bubble talk that has been going on for the last few months especially? I mean, I think it's quite possible.
I definitely think it is a bubble. Being afraid of it is kind of useless because if you had been afraid of the dot-com bubble in say 1999, you would've been correct in the short term but very wrong in the long term.
It's always, it's more exaggerated now than most of the time in the past. It frequently doesn't come to a good end, but it'll be with us 100 years from now just as it was with us 100 years ago.
And so I think in the short term, yes, we're gonna have a correction. People are gonna lose money. There's gonna be companies go out of business. Etc. But do I think that in the long run the technology will win? Absolutely. And so someone betting against, like in the stock market against these stocks might be right, but I would never bet against the technology in the long term. I think the only difference today versus the dot-com bubble is that the companies today do have real revenue. Now, they don't have great profits, but they have a product and it's actually making money. AI is not profitable yet. I know that because there's a website that tells me so. Is AI profitable? Dot-com. The dot-com bubble You can just add .com to your business name and immediately have a jump in your stock price. I'm starting to see fringes of that. Like if you just add some sort of AI-related thing, all of a sudden, like Allbirds, a shoe company, becomes an AI company and like 30x's its valuation. That's very worrisome to me. I think the thing that I'm looking for is underlying the hype. Is it actually growing revenue and does it have a clear pathway to profitability?
