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April 15, 2024, 1 a.m.
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Brief news summary

The excitement around generative artificial intelligence (AI) has led to billions of dollars in investment and the rapid growth of AI-related companies. Some skeptics warn that this is another tech bubble reminiscent of the late-90s dot-com era, but others argue that the AI hype is different. Unlike the dot-com era, there is a sense of dread surrounding AI, with concerns about its ethical implications and potential job displacements. Additionally, AI technology is more complicated than websites in the late 90s, making it harder for non-technical individuals to start AI businesses. While some believe that AI hardware companies may be overvalued, AI software companies are still within reasonable price ranges. Despite the debate, many experts do not expect the AI bubble to burst as badly as the dot-com bubble, as AI has the potential to generate substantial revenues and its full potential has yet to be realized.

During the early 2000s internet boom, many Harvard Business School students dropped out to join startups, only for the bubble to burst and result in economic downturn. However, today's AI craze is different as there is a healthy skepticism among students due to the potential risks associated with the technology. While AI has attracted significant investment, some warn of another tech bubble. However, there are differences between the dot-com era and the current AI hype. Unlike the simple technology of the late '90s, AI is more complex and requires technical expertise.

Furthermore, the stock rallies of AI hardware companies may be more vulnerable than AI software producers. Even though debates exist about the future impact of AI, its potential risks are more defined than those of the internet boom. Experts disagree on whether an AI bubble burst would have the same catastrophic consequences as the dot-com era. Some perceive AI as having limited potential and foresee signs of price erosion, while others believe AI has the capacity to generate substantial revenues but caution that the current hype may lead to disappointment.


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