Investors are drawing sharp parallels between today’s AI mania and the late-1990s dot-com era, as private and public valuations surge ahead of profits and Big Tech commits record capital to AI infrastructure. The piece argues the dot-com collapse stemmed from a confluence of Fed rate hikes, a global growth scare beginning in Japan, and business models that couldn’t convert hype into revenue—echoing risks now as AI spending soars. With corporate AI investment topping $250 billion and giants like Amazon, Google, Meta, and Microsoft budgeting unprecedented capex, even boosters like Sam Altman warn of overexuberance. The lesson: when financing costs rise and confidence wavers, inflated narratives meet cash-flow realities.
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