This podcast episode explores the analogy between the current state of AI and Web 1.0, highlighting the difference between network effects and the data processing nature of AI. It discusses AI as a new kind of computer, drawing parallels with the computer industry's evolution. The potential for boom and bust cycles in AI is acknowledged, but the transformative capabilities of AI models in understanding language and images are emphasized. It also explores the expanding computer industry and predicts a future diverse ecosystem of AI models.