The AI bubble is looking worse than the dot-com bubble. Here’s why.
1 min read
It’s different this time. How many times have we heard that? It usually turns out to be wishful thinking. This time, the generative-AI bubble may really be different than the dot-com bubble — just not in a good way.
The number of generative AI users is growing faster than the number of internet users in the late 1990s — except the comparison is essentially meaningless.
Think about it. What did people have to do to become internet users in the late 1990s? They had to buy a computer and subscribe to an internet service provider, which were both expensive.
How much does it cost to use generative AI today? Nothing. You already own a computer and pay for internet access, and OpenAI and others offer limited-use services for free. The substantial cost of accessing the internet 30 years ago meant that users anticipated substantial payoffs. The minimal cost of accessing ChatGPT and other generative-AI systems today means that users don’t need much of a payoff, if any, to give it a try.
