Is the AI Bubble Just Like the Dot-Com Bubble?
gaganghotra_ · x · 2026-07-19
Drawing a parallel to the dot-com era, this post argues that while the underlying AI technology is real, many of the current business models might not survive.
The author points out clear similarities between the two cycles: infrastructure build-out outpacing actual demand, loss-making companies going public during peak hype, CEOs acting aggressively toward critics, and vendors financing buyers to keep the loop going. They specifically highlight today's AI data center expansions, massive IPOs, and Nvidia offering financing to clients, drawing heavy comparisons to telecom industry practices in the 1990s.
More from Venture
- ChatGPT sends just 0.62% of Google's traffic — but it's a branding channel, argues iPullRank — VeryWellVersed · 2026-10-26
- Ant's $46.4B annualized enterprise software spend already equals ~3.2% of global software spending — BenBajarin · 2026-10-26
- Which VCs stand to make blockbuster gains from Anthropic's eventual IPO — nmasc_ · 2026-10-26
- citrini pushes back: '80B losses vs 16B revenue' confuses net income with burn — citrini · 2026-10-26
- Anthropic files S-1: IPO expected between Nov 2026 and Feb 2027, valuation up 15x — alliekmiller · 2026-10-26
- Anthropic S-1 reveals 48 cents of compute cost per dollar of Q2 revenue — nmasc_ · 2026-10-26