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Powell – unlike the dotcom boom, AI spending isn't a bubble

(fortune.com)
29 points madaxe_again | 1 comments | 01 Nov 25 18:40 UTC | HN request time: 0.222s | source
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smj-edison ◴[01 Nov 25 19:37 UTC] No.45784631[source]▶
> Powell’s framing echoes that view: The AI race, while frothy at times, is being financed mainly through corporate cash flow rather than speculative debt.

I think this is the most important line. Even if these companies are overvalued, I don't think there will be a nasty pop (this could change if banks start getting more involved, but so far it's been mainly company reserves and VC funding).

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1. bostik ◴[01 Nov 25 19:55 UTC] No.45784783[source]▶
I'd say the lines just before that are more illustrative of _why_ this sentiment is even possible to express: Goldman team wrote. “AI investment as a share of U.S. GDP is smaller today (<1%) than in prior large technology cycles (2%–5%).” In other words, there’s still plenty of room to run.

However, someone has now uttered the four words we should all recognise. "This time it's different."