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by crnkofe
953 days ago
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AI is the next bubble. VCs are really pushing it but I don't see this solving day to day software development problems anytime soon. Solving difficult CS problems is one thing and I do find it impressive, unfortunately the greater majority of everyday work is not about generating Snake games or 0/1 knapsack solutions. Also the idea that we'll need less engineers is bogus. Technology doesn't reduce the amount of work we do, it just increases productivity and puts more strain on individuals to perform. With AI spitting out unmaintainable code nobody understands I can only see more work for more engineers as the amount of code grows. |
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In aggregate, they are just the phenomenal of an extremely high risk high reward investment environment.
Most tech companies do not need cash to scale. There are few factories to be built. What they need is risk capital. The big successes alphabet, Facebook, Amazon.. these winds are so big, that they really do "justify" the bubbles.
Amazon alone, arguably justifies the '90s dotcom bubble. The tens of billions invested into venture, IPOs... A balanced portfolio accrued over the period, was probably profitable in the long term... Especially if the investor kept buying through and after the crash.
IDK that anyone actually invests in risky startups that way, but just as a thought device..