Jeff Guo

Like, they're buying them as an investment.

In that case, when the bubble pops, what do we get?

A bunch of LaBooBoos that nobody wants.

Right.

OK, so there are two big questions here.

Question number one, if AI is a bubble, how bad is it going to be if it pops?

Obviously, investors will lose a lot of money.

One economist told our friends at The Indicator that an AI crash could erase $35 trillion from the global economy.

People will lose their jobs, they'll be spending less money, and the consequences will ripple out and affect all of us.

Okay, and now for the second question.

If AI turns out to be a bubble, how bad is it that we are spending all this money right now training AI and building these AI data centers?

Because if this AI bet doesn't pay off, all those billions of dollars, they could probably be spent better right now, you know, researching drugs or building solar farms or buying cat treats, right?

Like computers are not labooboos.

They do have some other uses.

And actually, there's an interesting example from history here.

During the dotcom bubble, there was all this Internet hype.

So companies spent billions of dollars putting fiber optic cables into the ground, you know, to transfer people's data.

After the dot-com bubble popped, a lot of that fiber just sat there unused.

It was called dark fiber.

But that didn't turn out to be a total waste of money.