AI is probably not a bubble - by Peter Wildeford

Is AI a bubble? Goldman Sachs CEO David Solomon, Ray Dalio, Sequoia’s David Cahn, the International Monetary Fund, and the Bank of England are all saying so. Former Intel CEO Pat Gelsinger put it bluntly: “Are we in an AI bubble? Of course. Of course we are.” Altman repeated the word “bubble” three times in 15 seconds at a dinner with reporters. But the twist is that most of these people are saying “yes, it’s a bubble” while simultaneously announcing they’re spending hundreds of billions more. Zuckerberg says a collapse is “definitely a possibility” but insists underinvesting is worse. OpenAI’s Sam Altman warns investors will get “very burnt” while still planning $850 billion in data center buildouts. Jeff Bezos says AI is in an industrial bubble while Amazon spends $100B/yr in AI R&D. How do we make sense of this? Share Back in March 2023, OpenAI reported $200M in annualized revenue.1 Incredibly, this annualized revenue passed $1B just five months later, at the end of August 2023. It

Is AI a bubble? Goldman Sachs CEO David Solomon, Ray Dalio, Sequoia’s David Cahn, the International Monetary Fund, and the Bank of England are all saying so. Former Intel CEO Pat Gelsinger put it bluntly: “Are we in an AI bubble? Of course. Of course we are.” Altman repeated the word “bubble” three times in 15 seconds at a dinner with reporters. But the twist is that most of these people are saying “yes, it’s a bubble” while simultaneously announcing they’re spending hundreds of billions more. Zuckerberg says a collapse is “definitely a possibility” but insists underinvesting is worse. OpenAI’