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Ask HN: Could AI be a dot com sized bubble?

Jun 20, 2024 - news.ycombinator.com
The article discusses the possibility of AI being a dot com sized bubble, with the hype around AI landing in the laps of retail investors and those passively investing. The author notes that shares in companies like NVIDIA and Microsoft have risen and become part of major ETFs due to the expectation that AI-driven demand for their products will continue. Other tech stocks are also seeing similar treatment due to AI hype.

The author expects that generative models will be incredibly important in the future, similar to the internet, but notes there are high expectations for its usefulness in the near future with unclear ideas around business models, similar to the dot com era. The author questions if these near future expectations don't pan out, could companies slow down their R&D expenditures which are currently supporting NVIDIA, Microsoft, and others, leading to a significant stock market correction.

Key takeaways:

  • The author questions whether AI could be a dot com sized bubble due to high expectations and hype.
  • Shares of NVIDIA and Microsoft have risen due to the expectation of continued AI-driven demand for their products.
  • The author believes that the current trajectory of generative models will be incredibly important, similar to the internet.
  • If near future expectations for AI don't pan out, companies may slow down their R&D expenditures, potentially leading to a sizable stock market correction.
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