AI is all the talk. Turn on CNBC and it is about AI stocks, go to social media and people are arguing about the ethics of generative AI or the environmental impact of AI, go to a business meeting and get asked how are you using AI in your business. It is in our economic veins.
All of this excitement around one sector has created a lot buzz and doubt. The biggest argument isn’t if the AI bubble is going to burst but when. The biggest comparison is often to the dot-com bubble and how it impacted everything near the start of the millennium.
As I was driving home the other day I had the thought that the dot-com bubble wasn’t really the dot-com bubble. It was the dial-up bubble. Which then led me to the thought of what is Wi-Fi for AI? What would embed AI more than it already is?
I naturally thought about flock cameras and how we’re already living in Minority Report. We are going to walk into subways and start getting custom ads sooner than we realize. 1984 has arrived and it isn’t big brother that is watching but a used car salesman.
With this thought in mind my opinion didn’t really change. I viewed Nvidia as the Cisco of this bubble and decided I really didn’t view the stock the same way as I did Microsoft, Apple, or Google. I decided to was a temporary position.
Almost immediately new evidence emerged that changed my mind. Nvidia created the GPU equivalent of Honda Financial Services. Now they aren’t just selling a product by financing it as well. Collecting the sales price and the interest. That is an insane position to be in, and then the earnings reports continued to flow in.
An insane amount of money is being spent on AI. The companies doing the spending have all had massive failures before; Zune, Fire TV, Stadia, and survived, and the companies starting up are now reporting record revenues.
It looks like a bubble. All this money is being spent into something we don’t even know if it is profitable yet, but ask yourself what would have happened to AOL and Cisco if Wi-Fi had arrived five years sooner?
David Huzzard Writes 