Finally, let’s talk about AI. Uh, Domi is the conversation. Uh, I thought of you, my friend, because I saw Jared Bernstein. He’s a smart guy. I had an op-ed this week, a new op-ed, talking about the AI bubble, which I know you think about a lot. And this is what Jared said. Jared says a bubble occurs when the level of investment in an asset persistently diverges from the amount of profits that asset could plausibly generate. And Bernstein says he thinks investing in AI fits that pattern. What do you think?
00:36 Speaker B
I’m not so sure about that.
00:37 Speaker A
As?
00:38 Speaker B
Well, you don’t agree with Mr. Bernstein.
00:39 Speaker A
Yes. Yes. Yes. And the reason is, when we look back at other markets, whether it’s the mobile phone, whether it’s the smartphone, whether it’s the Internet, we have to pay attention to what is the existing capacity, what is the demand for that capacity. And everything indicates that, whether it’s enterprise or consumer, we’re still in the early stages, you know, not in the initial stages of adoption and use, neither the first nor the second. I’d say we’re more like, you know, third inning, fourth inning, something like that. I get a little concerned as we move forward and it’s more like the seventh inning, the eighth inning, and the rate of incremental adoption or incremental usage is starting to slow down. That’s when I worry because then we run the risk of building too much.
01:25 Speaker A
I had a smart analyst on the show, I’ve been doing this for a long time, and I asked him, do you think that, I mean, you covered mobile, you covered the Internet, right? Is this another paradigm shift? And he said that AI is not only a paradigm shift, but it will be bigger than those two.
01:46 Speaker B
I agree with that. I absolutely agree with that. If so, you know, there are many things that are easy to compare with the Internet because it profoundly changed the way we work.
02:00 Speaker A
Is it and you say it because in the end it is as big or bigger?
02:04 Speaker B
I think it’s, you know, I’ll say this. In 1998, 1999, when we were in the early days of the Internet, did we think we’d be streaming, paying bills, and all the things we take for granted now? You are welcome. So I suspect there will be a lot of incremental applications that we haven’t really thought about that may alter the way we do things. You know, it will cost some jobs, it will create jobs. Net net, I think it’s a positive thing.
02:40 Speaker A
If I’m an investor, I’m listening to this and I have to do it, okay, that’s the bet, you say that ultimately, ultimately, in the long term, yes, there will be material revenues and margins realized from all this investment and spending in AI that we are seeing.
03:00 Speaker B
Uh, I would say the short answer is yes, but will all the companies that people invest in or bet on, make it? Not everyone is going to make it.
03:13 Speaker A
Choose your places.
03:14 Speaker B
Correct.