If AI is a bubble, what happens when it pops? - Front Burner
Description
With the absolutely massive amounts of money tied up in the AI data centre boom, it's not hard to see why people fear a bubble. That worry has come into sharper focus in recent weeks, following comments from OpenAI and some big moves on the stock market.
This recent round of bubble fear isn't about the tech itself. Rather, it's a growing realization that the boom is being funded in a way that’s starting to resemble some historically devastating bubbles of the past.
Paul Kedrosky is a partner at the venture capital firm SK Ventures and a research fellow at MIT's Initiative for the Digital Economy. He explains why changes in the AI boom's financing are renewing fears of a bubble bursting, and the massive potential impacts if it does.
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