the Daily Whale

Is AI in a bubble that will burst? Not yet. Right now, data centers cannot be built fast enough to meet the demand for more AI. But a bubble is not unlikely in future years. For example, China might follow their standard market takeover playbook: Subsidize producers to create a deliberate oversupply so that the lowest prices are Chinese and everybody else gives up the competition. But that can't work for the time being, because China can't outspend the private financing of Silicon Valley which is doing the same thing.