Burkov: Generative AI Only Makes Money for GPU Sellers, Echoing Dotcom Bubble
burkov · x · 2026-10-03
Software engineer and deep learning author Alex Burkov draws a parallel between the dotcom bubble and generative AI's profitability:
- During the dotcom era, almost no dotcom company made money except those billing hourly to build them;
- Generative AI today is the same — the only winners are those selling "matrix multipliers," i.e. GPUs.
The implication: profits in the current AI boom are concentrated in the compute supply chain rather than the application layer.
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