Precursor VenturesA classic pre-seed and seed stage venture capital firm

Are we overestimating AI infrastructure demand?

29 Sept 2025 · 1 min

Watch on YouTube

0:35

A Precursor Ventures speaker warns humans are poor at forecasting demand during rapid change and expresses concern that current investments in AI-related infrastructure (data centers, fiber, power, private credit) may be overbuilt if future AI demand is overestimated.

Chapters

My worry is humans are very bad at forecasting demand at times of rapid change. And while we eventually needed most of that fiber we put in the ground in the late 90s, we didn't need it in the 2000s. And I worry that what happens if it turns out we don't need all of these data centers that were built? That's a whole. That's probably another podcast about, like, private credit data centers, power and the infrastructure, real asset investments that are happening outside that are all predicated on the ability to accurately predict future demand for AI. And I'm not so sure we've ever been good at doing that.