The AI boom — and echoes of the 1990s
In the 1990s, the internet created a new economic orbit around Silicon Valley. Today, AI is doing the same — fueling growth, optimism, and massive investment.
But as Rana Foroohar notes, this time the story comes with new constraints and higher stakes. AI’s surge is capital intensive, energy dependent, and driven by a few cash-rich giants rather than startups fueled by debt.
Still, the parallels to the dotcom era are hard to ignore: soaring valuations, a market led by a narrow group of tech titans, and a wave of investor exuberance that may be outrunning fundamentals.
The key question isn’t whether AI will reshape industries — it will — but whether the growth story can sustain itself without overheating the system that powers it.
Source: https://www.ft.com/content/834487ce-2357-40c4-bf45-34562e522755
