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- Is AI a bubble?
News of the day
1. OpenAI chair Bret Taylor acknowledges the AI bubble but remains optimistic, comparing it to the dot-com era and emphasizing AI's transformative economic potential → Read more
2. Politicians are pushing AI as a quick fix to Australia's housing crisis, risking another Robodebt-like failure. → Read more
3. Meta AI's MobileLLM-R1 offers efficient edge reasoning with sub-1B parameters, achieving 2x-5x performance gains over other open-source models on math and coding tasks → Read more
4. Karen Hao likens the AI industry to an empire driven by AGI ideology, questioning the immense costs and prioritizing speed over safety → Read more
Our take
Hi Dotikers!
Bret Taylor, OpenAI's board chair, just dropped a quiet bombshell: yes, we're in an AI bubble. Yes, people will lose enormous amounts of money. And no, that's not necessarily a problem.
His argument? Both can be true at the same time: AI will transform the economy AND many will fail. Exactly like in 1999 with the internet bubble, the visionaries were right about the fundamentals, but the timing and valuations were completely off.
It's interesting because this aligns exactly with what Peter Thiel has been saying for years. Thiel, PayPal co-founder, Facebook's first investor, and theorist of the "creative monopoly" concept, has a counterintuitive view of bubbles. For him, the dot-com crash wasn't just a catastrophe. It was necessary to clear the market of worthless projects and allow real innovations to dominate.
Thiel goes even further: he believes bubbles are useful because they massively fund the infrastructure of the future. Without the speculative madness of 1999, we would never have gotten the submarine cables, data centers, and all the infrastructure that enabled the web explosion of the 2000s.
Meme of the day
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