There’s no hard delimiter on financially induced sector collapse, and it’s often not directly attributable to the sector that collapses. The dot com crash was tied to federal reserve interest rate increases that resulted in a sell off as investors moved towards less speculative investments.
AI is in a fairly safe position right now through sheer variety of vested interests. Government, construction, infrastructure, computing hardware, software, and early corporate adopters of AI are all doing everything they can to keep the ball rolling. They’ve crossed a line where sunk costs have an outsized role in future decisions. There’s also the wildcard of AI being deemed a strategic defense asset.
The present state of spending will continue until there’s some catastrophic event that scares people off or public pressure forces a reduction in scale.
My money is on public pressure leading to change. Data centers are being publicly subsidized and the general public is beginning to push back. One or two public service commissions refusing to comply with energy and water subsidies will lead to wide scale changes that will put the brakes on. Things will move out of startup mode and into the realm of actual business.
There’s no hard delimiter on financially induced sector collapse, and it’s often not directly attributable to the sector that collapses. The dot com crash was tied to federal reserve interest rate increases that resulted in a sell off as investors moved towards less speculative investments.
AI is in a fairly safe position right now through sheer variety of vested interests. Government, construction, infrastructure, computing hardware, software, and early corporate adopters of AI are all doing everything they can to keep the ball rolling. They’ve crossed a line where sunk costs have an outsized role in future decisions. There’s also the wildcard of AI being deemed a strategic defense asset.
The present state of spending will continue until there’s some catastrophic event that scares people off or public pressure forces a reduction in scale.
My money is on public pressure leading to change. Data centers are being publicly subsidized and the general public is beginning to push back. One or two public service commissions refusing to comply with energy and water subsidies will lead to wide scale changes that will put the brakes on. Things will move out of startup mode and into the realm of actual business.