Part 5/11:
The debate around whether AI's rise constitutes a market bubble persists. Jared Bernstein, an economist who recently opined that AI might be entering a bubble phase, argues that market investment currently outpaces the actual profits companies can generate. His concern is that the level of investment is detached from real earnings potential, echoing past tech bubble anxieties.
Rasgon counters this view by emphasizing the current demand dynamics. Unlike the early 2000s, when infrastructure sat unused, today’s AI hardware is fully deployed and in high demand. The industry is witnessing an explosion in compute needs, with companies from hyperscalers like Google to enterprise firms rushing to expand their AI capabilities.