This episode explores the parallels between the current enthusiasm for AI and the dot-com boom of the late 90s, featuring Henry Blodgett, founder of Insider, as a guest. The conversation begins by drawing similarities between the AI sector and the internet boom, noting the influx of investment capital and subsequent experimentation, while also pointing out that the broader tech sector isn't necessarily in a bubble, as valuations for major players remain reasonable. More significantly, the discussion pivots to the private AI market, where valuations are skyrocketing, particularly for companies like OpenAI, prompting a deeper examination of revenue projections and investment strategies involving preferred stock. As the discussion pivots to the narrative around AI, the conversation touches on the importance of storytelling in tech, using Tesla and Elon Musk as prime examples of how compelling narratives can drive investor enthusiasm. In contrast, the conversation shifts to potential pitfalls, drawing lessons from the dot-com crash, where many secondary companies failed despite the success of industry leaders like Amazon and Yahoo. The conversation then shifts to the intertwined nature of US and Chinese economies, with Blodget expressing a desire for continued integration and cooperation rather than escalating tensions.
