If you think we’re in an “AI bubble,” watch this video till the end. We’ve seen bubbles before. The dot-com bust wiped out companies overnight, bankrupted those who overreached, and erased trillions in paper wealth. But it also left behind fiber-optic cables and e-commerce infrastructure that still power the world today. The same thing happened with biotech in the ’90s: most investors lost money, but society walked away with life-saving drugs. That’s the difference between financial bubbles and industrial bubbles. Financial bubbles (like the banking crisis in 2008) leave only destruction. Industrial bubbles, on the other hand, can be messy, but when the dust settles, the world is left richer. The failed companies disappear, but the inventions, tools, and infrastructure remain. Today, AI is in its own industrial bubble. Every idea gets funded, good and bad. Valuations defy gravity - teams of six people with no product are being handed billions. But hype doesn’t mean the underlying technology is fake. AI is real. And its impact won’t stop at “AI-first companies.” It’s a horizontal technology that will run through every single industry - manufacturing, hotels, consumer brands, everything. The market in the short term is a voting machine, but in the long term, it’s a weighing machine. Your job isn’t to chase the vote. Your job is to build something heavy enough to be weighed. We’re living through multiple golden ages at once - AI, robotics, space. Just like the plow, electricity, or the internet, these tools will increase abundance for everyone. This is one of the best times in history to be alive and building. So don’t get distracted by whether we’re “in a bubble.” Focus on fundamentals. Focus on building something that lasts. Follow me Endrit Restelica for more.
Brilliant take. In my view, every “industrial bubble” follows the same curve — euphoria, disillusionment, and then quiet adoption. The dot-com bust killed hype but birthed trillion-dollar habits. What’s fascinating is how investor psychology keeps repeating the same cycle — overestimating short-term impact and underestimating long-term transformation. AI’s correction, when it comes, will likely clear noise, not progress. 🚀
The idea that innovation creates abundance is only ever espoused by billionaires. It also exacerbates income inequality. Yes there is absolute value in #ai, but it’s frustrating to hear billionaires indifference to the social and economic distortion of the tech
Jeff is one of the most clever minds right now
Not being effected by bubbles is a luxury of those who get bailed out.
Great video. Nevertheless I find it a little bit concerning that Jeff Bezos “can’t see why anybody should be discouraged about AI”. Of course AI will create abundance, but there is going to be a social and economic impact that must be seen and managed. I’m taking about millions of people potentially being pushed out of work in a short period of time because replaced by AI. We need to monitor the situation and ensure that the transition from today’s economy to an AI fueled economy is politically sustainable. Business thrives in peaceful and balanced societies, not when there is mass unemployment.
“Productive” For people like Bezos who destroy rural communities and make the locals living paycheck to paycheck pay for his data center’s electricity bills.
Brilliant.. every industrial bubble follows same curve. The dot com bubble left fibre network which powers internet today. Data center and Ai part of new Industrial Revolution which will be start of Golden age of Robotics and space. Fundaments of business should not change sustainable growth and profitability.
Brilliant framing ; reminds me of Carlota Perez’s work on “technological revolutions and financial bubbles.” She found every major tech revolution starts with hype, crashes hard, then enters the deployment phase where true value compounds. AI is right there now.
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2wWhile we're here. Nvidia's market cap now exceeds that of all of big pharma combined.