@htmlallthethings: We keep hearing that we're in an AI bubble, that we're not in an AI bubble, or that we're definitely in an AI bubble that's about to pop. While it's impossible to tell the future, we can look to the past to help us estimate what will happen. Just like with many other transformative technologies like the railway or the internet - we saw money pour in, a bubble form, and then eventually pop. These technologies are seen as so foundational today that it seems impossible for them to have ever lost value in such a dramatic way... so what happened? While every economic bubble has their unique flavour, a common thread among these two is that the technology was new and everyone knew they were a huge deal. Money kept pouring in, but with inventions so fresh even the experts were newbies. During the railroad bubble, we didn't know the best places to run rail lines, build train stations, or the most efficient way to run supplies. This lead to many raildoad companies outright folding due to lack of profitability. During the dotcom bubble, websites were not as fleshed out as they are today - nobody knew the best way to do ecommerce, or if ecommerce made sense at all... and web apps hadn't been sorted out either. Even without a new technology, speculation and excitement can drive a bubble to form and eventually pop, just like it did in the 2008 financial crisis. People thought that home prices were going to raise forever. Banks kept giving out risky mortgages and then investing that money all over the economy. Once the mortgage holders started defaulting on their loans, the entire money pipeline started to unravel. Does that mean that AI is a bubble? Well there's a tonne of money pouring in, it's a new invention that we don't have a hold of yet, and everyone is speculating on the best way to use and monetize it. History indicates that we are likely in for a bubble pop, or a correction of some kind... but AI is a unique invention so maybe it'll be able to spare itself from the fate of other innovative pieces of tech. In this edition of the Web News, Matt and Mike discuss the economic bubbles of the past and how they stack up to our current AI realities. #ai #aibubble #dotcombubble #techtok #webnews

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