Why the A.I. Boom Is Unlike the Dot-Com Boom
The New York Times • • business
Key Points:
- The dot-com boom of the mid-1990s led to massive internet growth but ended in a crash in 2000, causing a recession, $5 trillion in lost stock value, and a rise in unemployment from 4% to 6%.
- Silicon Valley is currently experiencing an artificial intelligence boom with similarities to the dot-com era, including hype, rapid wealth creation, and high company valuations.
- Unlike the fragile dot-com startups, today's AI development is driven by established tech giants like Microsoft, Google, and Meta, which have vast resources and are not at risk of collapse.
- The AI boom benefits from existing business models and infrastructure, as companies like Amazon and Google continue their core operations while investing heavily in AI technology
