Gone are the days of debating whether AI is an economic bubble. Having already fallen $800 billion short of turning a profit on the AI boom, some of the tech industry’s biggest players have accepted that the financial arithmetic on AI just doesn’t add up.
But here’s the catch: though the AI bubble objectively makes life harder for the rest of us, to the Silicon Valley elite, the economic consequences of its downfall could actually be a good thing.
The pro-Bubble stance has its roots in a 2024 book called “Boom: Bubbles and the End of Stagnation,” by tech investors Tobias Huber and Byrne Hobart. These fellas argued that there are essentially two kinds of economic bubble: the good ones, like the Dot Com bubble, and the bad ones, like the 2008 subprime lending crisis.
As the venture capitalist James Thomason wrote last year: “Stop trying to make bubbles go away. Yes, bubbles create volatility. Yes, investors lose money. Yes, employees lose jobs when companies fail. But the alternative is underinvestment in transformative opportunities.”
Say_Echelon on
Then why don’t the publicly so? Not like anyone is going to hold their feet to the fire over it if they want to change an opinion over something important
fractaldesigner on
Who knows what they do quietly, but externally they certainly aren’t rooting for the poor.
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Gone are the days of debating whether AI is an economic bubble. Having already fallen $800 billion short of turning a profit on the AI boom, some of the tech industry’s biggest players have accepted that the financial arithmetic on AI just doesn’t add up.
But here’s the catch: though the AI bubble objectively makes life harder for the rest of us, to the Silicon Valley elite, the economic consequences of its downfall could actually be a good thing.
The pro-Bubble stance has its roots in a 2024 book called “Boom: Bubbles and the End of Stagnation,” by tech investors Tobias Huber and Byrne Hobart. These fellas argued that there are essentially two kinds of economic bubble: the good ones, like the Dot Com bubble, and the bad ones, like the 2008 subprime lending crisis.
As the venture capitalist James Thomason wrote last year: “Stop trying to make bubbles go away. Yes, bubbles create volatility. Yes, investors lose money. Yes, employees lose jobs when companies fail. But the alternative is underinvestment in transformative opportunities.”
Then why don’t the publicly so? Not like anyone is going to hold their feet to the fire over it if they want to change an opinion over something important
Who knows what they do quietly, but externally they certainly aren’t rooting for the poor.