AI bubble could drive real progress while investors lose money, says Zurich professor Thorsten Hens
WeBeBallin · reddit · 2026-09-19
Thorsten Hens, professor of financial economics at the University of Zurich, argues in an interview that speculative bubbles can advance technology even when backers lose money.
- Core argument: decentralized investment gets many different ideas tried; the process involves exaggeration, failures and bubbles, but also produces discoveries that are hard to plan in advance
- Analogy: building a rocket and blowing it up — some learning only comes from doing the thing and experiencing consequences
- Applied to AI: if an expectations collapse leaves behind useful tools, cheaper methods and research others can build on, the spending may still have been worthwhile for society — less comforting if your pension funded the experiment
- Counterpoint: money, talent and electricity have other uses; many attempts don't automatically justify the cost, and some may just be expensive duplication
Interview available on YouTube, relevant discussion starts around 11:06.
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