Part 8/13:
Because this transition involves replacing the core manufacturing and infrastructure of computing itself, overbuilding isn't just unlikely; it's practically impossible. Just as power grids expanded in the early 20th century in response to electrification, so too does AI infrastructure need to grow to accommodate this transformative shift.
Market Sentiment: From Panic to Confidence
The recent market narrative reflects a changing perception of AI investments. During Meta's previous ramp-up of Reality Labs' metaverse efforts, investors reacted negatively, fearing unprofitable, speculative spending. As a result, Meta's stock plunged despite billions invested.