Right About AI Tech != Right About The Valuation: VC Warns of Bubble Risks
saranormous · x · 2026-08-02
Prominent VC Sarah Tavakoli warns that investors can be maximally long on AI technology while remaining skeptical of current entry valuations.
Drawing a parallel to Cisco during the dot-com bubble, she notes that those who bought at a 200x P/E ratio in March 2000 were fundamentally right about internet traffic growth, yet still lost 85% of their investment. Being right about the technology does not equate to being right about the financial surplus and valuation.
Related event: Investors Warn: Believing in AI Tech Won't Save You from Valuation Bubbles(2 posts)→
More from AGI Musings
- VC warns a "digital aristocracy" of LLM-fluent workers is emerging — StewartalsopIII · 2026-10-16
- DHH: Starship, Starlink and Grok should have been Europe's Sputnik moments — georgemillo · 2026-10-16
- Hinton hits back at Jensen Huang: 'He has good reason to say AI isn't dangerous — he sells Nvidia chips' — BlackHC · 2026-10-16
- Yudkowsky blasts new interpretability finding as primitive; critic pushes back on doomer logic — AlexTensor · 2026-10-16
- Beff Jezos declares 'civilizational inflection point' in the acceleration of technological progress — beffjezos · 2026-10-16
- Data scientist: pivoting to AI engineering is the safest career bet for the next 5 years — mdancho84 · 2026-10-16