🫧AI Bubble vs Dot Com bubble 🗰

Back in 2000 the world experienced one big economic crisis the well-known dot com bubble.
26 years later a lot of people feels that another bubble is about to burst. Of course I am talking about the Artificial Intelligence which we most of use every day.

And while preparing for this video China’s tech-heavy STAR 50 Index plummeted roughly 40% over a four-month period, wiping out about $480 billion in market value.

That was a major correction!

Anyway let me explain my thoughts.

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I won’t say that this is a déjà vu because I was just a kid back in 2000, but I want to focus on how different it is at least in my eyes.

Also disclaimer, I am not an economic analyst or expert so this is just my opinion and I will keep it short.

1. The first major difference I see is that nowadays almost all people know how to use technology and that is true also for the AI. 26 years ago 8 out of 10 people didn’t even know what a website was and didn’t have smartphones,
2. So to make it even worse many people invested their money to companies they had no idea what they even offer. Now since most of us have a basic understanding about technology it’s a bit easier to avoid huge issues and it’s a major factor that helps the current AI situation.
3. This bubble might not burst due to wrong investment and over hyping people who don’t know about AI but most likely due to over squeezing the planet resources.
4. Finally companies like OpenAI and Anthropic are still burning investment money and not generating enough revenue. So basically profit is still out of the picture. This is not sustainable for a long period of time.

So in my opinion a correction is the best possible scenario that will most likely happen and I am not sure if and when the bubble will burst.

But In case it does then the future of AI will reshape how we learned to work the past 2 years. For that I am pretty sure.

I am curious to read your thoughts so leave a comment below and let’s discuss it!