At this time, AI is still a business that largely survives on valuation rather than profitability.
The narrative surrounding artificial intelligence is driven as much — if not more — by financial speculation as by technological progress. This makes the twin narrative of an “AI infrastructure boom” essential. Ed Zitron has become well known for challenging this story.
In reality, such an infrastructure boom is difficult to sustain when the underlying economics remain deeply unprofitable.
Now, let us take a moment to reflect on the danger of relying — for our businesses, and worse, for our civilization — on a bubble that could burst at any moment, much like the dot-com bubble. Entire industries are restructuring themselves around assumptions that may ultimately prove irrational, even disastrous.
The illusion and danger of replacing engineers
