Are we in an AI Bubble? Lessons from 1873 and 2000

samissermoyer.substack.com

4 pointsgreekanalyst2 comments

> Key differences separate the past from now. The railroads were a new industry with no cash flow; it was all about future growth.

Conversely, a finished railroad remains incredibly useful as the years pass, while a warehouse full of racks of specialized computer-chips depreciates much faster.

Fast depreciation of these assets is a key parameter that will guide who out of these players will win/lose in the long-run. I hope people at these teams have studied aircraft depreciation rates to understand the true LTV of their GPU clusters.

Reply on news.ycombinator.com