this is a Good Question, and the answer has a lot to do with the economics of venture capital. VCs need there to be a transformative breakthrough tech that offers massive returns bc their model is, to some extent, predicated on having a Facebook every once and while to offset failed investments.
I remember when Google Translate came out, everyone just understood like "this is neat for periodic personal use but it's often wrong and will never replace the average fluent human" and it was used as intended and is a great invention. Why did everyone forget this with the LLMs masquerading as AI?
this is why they were pouring money into crypto and the metaverse, this is why they’re doing the same with AI. it’s been around 7+ years without any large scale changes in consumer tech, and about 2 since interest rates made big IPO exits less attractive. they’re getting desperate.
I think the primary difference and why nVidia is the current most valuable company on the planet speaks to a little more certitude this time -
The value is clearly there for companies, or simply put, they’d stop spending. Not propel them to the top of the F500.
I think this is something that puts a lot more faith in their ability to behave as rational actors and not followers of a hype train than I’m willing to give them. admittedly, AI has more uses than say crypto did though, no argument there
although tbh, the emergent behavior of the market may be irrational, but the vast majority of actors are behaving rationally up to the limit of their computational power (very polynomially bounded) and their understanding of relative likelihoods (subjective to begin with and likely poorly updated)
