Industry3h ago
Damodaran Warns AI Crash Could Exceed Dot-Com Bust
Debt-financed physical infrastructure makes a potential AI crash more dangerous than the dot-com bubble, warns Aswath Damodaran. Unlike the software-heavy 1990s, today's build-out relies on massive capital expenditures. This creates systemic risk if the business model of job replacement fails to deliver returns. Investors face deeper losses if the hardware bet misses.