"I've actually already written a number of posts about the possibility of an AI bubble and bust. Back in August, I wondered if the financing of data centers with private credit could cause a financial crisis if there was a bust. I followed that up with a post about profitability, and suggested that the AI industry might be a lot more competitive than people expect. In October, I wrote about how AI is propping up the U.S. economy.
But I feel like I need to write another post, because almost all of the discussion I see about an AI bubble seems to leave out one crucial scenario.
Even if AI works, and even if it gets adopted very fast, it might not make profit." - Noah Smith





