An NYU Finance Professor Says This AI Crash Will Hurt More Than Dot-Com
NYU finance professor Aswath Damodaran just dropped a sober warning: the next AI crash could hit harder than the dot-com bust — because this time, the infrastructure spend is debt-financed.
His three uncomfortable points:
- It’s not pure software anymore. Every AI query costs compute. Margins stay thin, scale doesn’t bail you out.
- Deepseek is squeezing prices. Chinese competitors pressure margins further. Growth at bad margins can destroy value.
- Apple’s restraint looks smart. Standing back while others burn billions on hardware that may be obsolete in five years.
As makers, we love this tech. That’s fine — as long as we’re honest about the bet we’re making.
Full article (German): the-decoder.de
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