Top economist warns that the AI math doesn’t make sense: 'Profits are currently being funded by investors rather than earned from customers'

I feel like everyone knows it’s a bubble but that people are expecting it to be like the Dot-com bubble where a small amount of companies succeed, hoping that they invest in those companies.

That’s pretty much what is driving the entire AI “boom”. It’s the Amazon effect.

Amazon, and Netflix to a certain extent as well as a number of other early internet startups, lost money for around 10 years before they started making shit tons. And everybody wants to be on that particular ride. So they are queueing up in every AI line they can find to hedge their bets on one of them being the one that survives and thrives. It doesn’t really occur to any of them that all of them could fail. Because “AI is the future”. Except there is no plan to monetize any of them. And so far every time one of them introduces a charge, people stop using it.