Tech companies are making huge bets on AI infrastructure, leading to concerns of overinvestment. This mirrors the dot-com bubble, where excessive spending occurred without enough demand-driving applications. Investor skepticism is growing, with warnings that current spending may not generate proportional returns. Some analysts point to 'circular investment' among tech giants as a worrying sign. There are parallels drawn between the AI boom and previous tech bubbles, raising concerns about unsustainable business models. It is suggested that companies may shift towards flexible resource allocation rather than outright ownership, mirroring successful 'capacity sharing' approaches from past technology cycles. The focus is shifting towards profitability, with subscription plans offering advanced features. However, many organisations are struggling to see returns on their AI investments.
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