Tuesday, August 12, 2025

The AI Bubble: Why I Believe in Its Potential – Simple Living in Somerset

Navigating the AI Bubble: Lessons from the Dot-Com Era

Reflecting on the chaotic landscape of AI today? Take a step back to the dot-com boom. Here’s why it’s essential to keep your eyes peeled:

  • History Repeats: The frenzy over AI resonates with the wild enthusiasm of the late 90s.
  • Profitability Questions: Major players like NVIDIA are thriving, while many AI ventures struggle to turn a profit despite high Annual Recurring Revenue (ARR).
  • Skepticism is Key: Is AI just a pump-and-dump scheme? Critical voices highlight that while AI has potential, hype can overshadow real utility.

As we assess the present, remember the lessons of the past. Stay cautious and informed:

  • Smart Investments: Consider varied strategies like Naseem Taleb’s barbell approach for risk balancing.
  • Beware of Fads: Many AI tools may not meet expectations—know the risks before diving in.

Ready to understand more about the future of AI? Share your insights or tag someone who needs to join this conversation!

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