Your Family & Friends Have Questions About Tech & AI. We’ve Got Answers!
Deep Dives
Explore related topics with these Wikipedia articles, rewritten for enjoyable reading:
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Dot-com bubble
15 min read
The article directly compares the current AI investment frenzy to the dot-com bubble, making this historical financial event essential context for understanding whether AI valuations represent similar speculative excess
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Nvidia
12 min read
Central to the article's discussion of AI valuations and the neocloud business model, understanding Nvidia's dominance in AI chips and its role in the supply chain illuminates why its stock is considered 'hugely inflated'
As we gather with friends and family for Thanksgiving, the prospect of having to talk about the issues of the day looms.
We don’t believe we’re going out on too much of a limb here to say there will be plenty of gatherings where Newcomer subscribers will be treated as the de facto spokespeople for the tech industry and the artificial intelligence revolution.
You are the designated explainer. The interpreter of vibes. The cousin who is expected to have answers. The questions will come rapid fire as people look to you for guidance about the world Silicon Valley has wrought. Be ready.
But many of these topics — the fragility of the AI financial bubble, the environmental impacts of data centers, the secret worldviews of the tech industry’s elites — are thorny and controversial, bound to inflame already sensitive nerves. Also, frankly, they’re bummers.
To prepare our readers for all of this we’ve put together a handy Newcomer’s Guide to Tech Industry Conversations and How Best to Pivot Off of Sensationalist Talking Points and into Important Issues. The idea here is to make sure that you can quickly answer these questions while also redirecting into areas of comfort and stability.
And remember: while everyone gets a seat at the Thanksgiving table, only you have a seat at the cap table too.
TOPIC 1: Is AI a Bubble?
Quick Response: Really good question! Lots of leaders in tech are debating this very thing, and specifically whether there’s a stock-market bubble tied to AI. You’ve heard of Sam Altman, right? He says we are indeed in a bubble. (Or, if your family hates Trump, you can say, ‘Dario Amodei has argued that we’re not in a bubble,’ and then you can tell them who Dario Amodei is). But Sam, you know, he doesn’t always mean what he says! This AI frenzy is different from the infamous dot-com bubble, for sure: most of the largest AI companies have real revenue that is growing fast. That said, the cost of running these companies is enormous and there’s no sign of the fat margins we’re accustomed to in tech.
The valuations of Nvidia and all the rest are hugely inflated (you can state this with knowing confidence). Should you sell your stock?? Hard to say!!
Quick Pivot: (After you’ve enraged everyone with your both-sides-ism on the bubble
...This excerpt is provided for preview purposes. Full article content is available on the original publication.