Part 7/12:

The Bubble Analogy: Lessons from the Late 1990s

Drawing parallels with the late 1990s dot-com bubble, the experts warned that the current AI frenzy may follow a similar trajectory. During that period, exuberance led to inflated valuations despite a lack of sustainable profits. Many companies, including prominent names in search and social media, failed to live up to their lofty expectations once the bubble burst.

Analogies to the Manhattan Project and the Cold War's nuclear arms race were invoked to illustrate how the race for technological dominance can suppress immediate concerns over profitability. Players are willing to invest heavily, driven by the imperative to be first and secure a strategic advantage—regardless of short-term financial return.