I think AI is a bubble in the same sense that airline industry are.
Airline industry are notoriously hard to be profitable. (I heard it from the intelligent investor book)
So just because something is useful doesn't necessarily means that its profitable yet the VC's are funding it expecting such profitability without any signs of true profitability till now.
I mean, yes AI is a profitable, but most of the profitability doesn't come from real use case, but rather
the majority of the profitability comes from the (just slap AI sticker to increase your company valuation), and that's satisfying the VC right now. But they want returns as well.
And by definition if their returns is that a bigger fool / bigger VC is going to fund the AI company at a higher evaluation without too much profitability / very little profitability. Then THAT IS BUBBLE.
But being a bubble doesn't mean it doesn't have its use cases. AI is going to be useful, its just not going to be THAAT profitable, and the current profits are a bubble / show the characteristics of it.
Airline industry are notoriously hard to be profitable. (I heard it from the intelligent investor book)
So just because something is useful doesn't necessarily means that its profitable yet the VC's are funding it expecting such profitability without any signs of true profitability till now.
I mean, yes AI is a profitable, but most of the profitability doesn't come from real use case, but rather the majority of the profitability comes from the (just slap AI sticker to increase your company valuation), and that's satisfying the VC right now. But they want returns as well.
And by definition if their returns is that a bigger fool / bigger VC is going to fund the AI company at a higher evaluation without too much profitability / very little profitability. Then THAT IS BUBBLE.
But being a bubble doesn't mean it doesn't have its use cases. AI is going to be useful, its just not going to be THAAT profitable, and the current profits are a bubble / show the characteristics of it.