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:

1. It’s not pure software anymore. Every AI query costs compute. Margins stay thin, scale doesn’t bail you out.
2. Deepseek is squeezing prices. Chinese competitors pressure margins further. Growth at bad margins can destroy value.
3. Apple’s restraint looks smart. Standing back while others burn billions on hardware that may be obsolete in five years.

Full article (German): the-decoder.de