""In the end, something very profound happened. The world was very different," Gates said. "Some companies succeeded, but a lot of the companies were kind of me-too, fell behind, burning capital companies.""
""The value is extremely high, just like creating the internet ended up being, in net, very valuable," Gates said. "But you have a frenzy. And some of these companies will be glad they spent all this money. Some of them, you know, they'll commit to data centers whose electricity is too expensive.""
""Absolutely, there are a ton of these investments that will be dead ends," Gates added."
Surging investment in artificial intelligence has created bubble-like market conditions similar to the dot-com era rather than a short-lived speculative mania. The technology delivers profound, internet-scale value that will reshape industries, yet excessive capital deployment and unsustainable operating costs threaten many startups and projects. Overvaluation and heavy infrastructure spending, such as costly data centers, increase the likelihood that numerous firms will become dead ends. A market correction could eliminate me-too and burning-capital companies while leaving a smaller set of successful firms to capture long-term transformative benefits.
Read at Business Insider
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