The AI Bubble | Paul Kedrosky - Investor, Researcher, MIT Fellow

I sat down with Paul Kedrosky - investor, researcher and one of the smartest voices out there on the economics of AI and the risks of a bubble.Here are a few of the questions we talked about:What is a bubble?Is AI a bubble?How does it compare to past bubbles?What would cause the bubble to burst?Why should the average person care?Will we see a bull market in laser tag in all the abandoned data centres?What needs to be true for AI to NOT be a bubble?More info about PaulPaul Kedrosky is an investor, writer, and researcher. He has been a regular on-air contributor at CNBC and Bloomberg, and has written for the New York Times, the Wall Street Journal, and publications around the world. Paul started as an engineer, became a quota-carrying salesperson, then a technology equity analyst on Wall Street, and eventually a venture capitalist. He has started companies, held academic positions in the U.S. and Canada, has a popular newsletter, and is a research fellow at MIT's Institute for the Digital Economy. His Ph.D. research focused on risk, adoption, and path dependence in finance and technology.Where else you can listen⁠⁠Youtube⁠⁠ - https://www.youtube.com/@HumansintheLoopPodApple podcasts⁠⁠ - https://podcasts.apple.com/us/podcast/humans-in-the-loop/id1831285114Spotify - https://open.spotify.com/show/4BbslJR0KA5bfqrcYRhJER?si=b5a46211098b4f3eOr wherever you get your podcasts!Chapters00:00 The AI Bubble Debate06:44 Understanding Bubbles and Their Characteristics12:04 Historical Context: Railroads and AI17:51 The Call Option on AI's Future19:29 The Necessity of Bubbles for Progress25:31 Consequences of Stranded Assets26:51 The Dilemma of Data Centers28:46 The AI Bubble Dynamics31:20 The Impact of Economic Bubbles on Society34:06 The Interconnectedness of Global Financial Systems36:17 Public Sentiment Towards AI and Job Security38:18 The Fallacy of Technological Inevitability40:20 Regulatory Challenges in a Globalized Economy42:50 Predicting the Burst of the AI Bubble45:37 Market Sentiment and AI Valuations49:21 The Token Economy and Its Implications52:28 Possibilities of Change in the Current Landscape54:57 The Future of Work and Economic StabilityLinkshttps://paulkedrosky.com/Get in touch⁠Instagram⁠ - https://www.instagram.com/humansinthelooppod/Email: ⁠[email protected]⁠Website: ⁠https://www.theuncommonfounder.com