Part 8/13:
Murphy draws parallels with the late 1990s, when the internet boom led to similar massive infrastructure investments and speculative valuations. In 1999, many deals were driven by optimism about the internet’s potential, with less focus on sustainability. The bubble burst when the underlying fundamentals failed to justify sky-high valuations. Murphy suggests that today’s AI sector might be heading toward a similar reckoning if the assumptions about revenue growth, the efficacy of vendor financing, and market demand do not materialize as expected.