How the AI paradigm shift will compare to the internet’s

00:00 Speaker A

Finally, let’s talk about artificial intelligence. Ah, Domi’s speech. Oh, I was thinking of you, man, because I saw Jared Bernstein. He’s a smart man. There was a column this week, a new column, which I know you’ve been thinking a lot about, talking about the artificial intelligence bubble. Here’s what Jared had to say. Jared says a bubble occurs when the level of investment in an asset is persistently disconnected from the amount of profit that asset can reasonably produce. And Mr. Bernstein says that in his view, AI investing fits that pattern. What are you thinking?

00:36 Speaker B

I’m not so sure about that.

00:37 Speaker A

How come?

00:38 Speaker B

You disagree with Mr. Bernstein.

00:39 Speaker A

Yes. Yes. Yes. The reason for that is, you know, when we look at other markets, whether it’s mobile, smartphone, internet, we need to pay attention to what the available capacity is, what the demand for that capacity is. And all indications are, whether it’s enterprise or consumer, we’re still relatively early start-up, not in the early stages of adoption and usage, not first or second. I think we’re more like third inning, fourth inning. I worry a little bit as we move forward and it’s more like the seventh, eighth inning and the increased adoption or increased usage rate starts to slow down. That’s when I worry because then we run the risk of overbuilding.

01:25 Speaker A

I had a smart analyst on the show who had been doing this for a long time, and I asked him, do you think you’re talking about mobile or the internet, right? Is this another paradigm shift? And, he said, not only is AI a paradigm shift, but it will be bigger than both.

01:46 Speaker B

I agree with this. I totally agree with this. If so, you know, there are a lot of easy comparisons to be made with the internet because it has profoundly changed the way we work.

02:00 Speaker A

After all, are you saying that because he is just as big or because he is bigger?

02:04 Speaker B

I think I’ll say this. When we were in the infancy of the internet in ’98, ’99, did we think we’d be streaming and paying the bills and all the things we now take for granted? Like hell. So I suspect there will be a lot of incremental applications that we haven’t really thought about that could disrupt the way we do things. You know, it will cost some jobs, it will create jobs. Honestly, I think this is a positive thing.

02:40 Speaker A

If I’m an investor, I’m listening to this and I need to be listening to, okay, so is the bet, you’re saying ultimately long term, yes, there will be material income and margins from all these AI investments and expenses that we’re seeing.

03:00 Speaker B

My short answer is yes, but will every company people invest in or bet on be successful? Not everyone will make it.

03:13 Speaker A

Choose your places.

03:14 Speaker B

TRUE.