Benefit of the AI bubble

Faisal Hoque arguing that there are three bubbles in AI. He concludes his post by explaining the benefits of bubbles.

Far from being a threat, the AI bubble might be the best thing that could happen to pragmatic adopters. Consider what speculative excess delivers: billions in venture capital funding R&D you’d never justify to your board; the world’s brightest minds abandoning stable careers to join AI startups, working on tools that you’ll eventually be able to use; infrastructure being built at a scale no rational actor would attempt, driving down future costs through overcapacity.

While investors bet on which companies will dominate AI, you can cherry-pick proven tools at competitive prices. While speculators debate valuations, you will be implementing solutions with clear ROI. When the correction comes, you’ll also be able to benefit from fire-sale prices on enterprise tools, seasoned talent seeking stability, and battle-tested technologies that survived the shakeout.

The dotcom bubble gave us broadband infrastructure and trained web developers. The AI bubble will leave behind GPU clusters and ML engineers. The smartest response isn’t to avoid the bubble or try to time investments in it perfectly. It is to let others take the capital risk while you harvest the operational benefits. The bubble isn’t your enemy. If you play your cards strategically, it can be a major benefactor.