vertika

AI and why this time it IS different... And not in a good way! The Quantum of investment going into AI are not just high in absolute terms It is the highest investment EVER in history as a percentage of GDP - this year over 2% of US GDP going up to 3.6% over the next 5 years There is no other boom which accounted for even half as much in the past century and more. To get anywhere close we have to go back to the laying of train tracks or rail roads in the 19th century and even that was 'only' 2.2% of the GDP... Eventually led to the to one of the biggest busts in history, even though rail roads brought down the cost of transportation substantially for the entire economy. Telecom, fibre, internet all put together not even one third of the current boom! Remember what I have been saying for many months now that you lose more money in successful technologies than you do in unsuccessful ones. So calling AI a bubble is not making a bet that it would not be a successful technology. One additional point about technology busts. In the case of rail roads a company could go bankrupt but someone else could acquire the assets at 50% of 30% of the cost and make a viable return. Even the cables on which the internet is carried under the sea and that we still use were mostly laid by a company called Global Crossing that went belly up over 20 years ago. It will not work in the current boom as most investments very fast depreciating assets AND these are being bought at inflated prices (this is the other side of the fabulous margins of the likes of Micron and Nvidia) I repeat something I have said multiple Times already: I have no doubt that the next book on financial bubbles will have a chapter on AI.

Sobering data on the nuts and bolts of the 'India consumption story' As posted by @blitzkreigm of @CNBCTV18News