AI will prevail, most AI companies will go bankrupt. This is almost a carbon copy of Dot Com.
Dot Com was fueled by falling rate from Jan 1995 to Dec 1998. Credit was essentially free as people expected the rate to continue downwards. Demand for internet infrastructure was infinite as companies build internet for the sake of building internet. Things changed in 1999 as the 10y yield roared from 4.6% to 6.7% in one year. Internet firms that were losing money suddenly could not sell their shares or issue bonds under 10%. Suddenly building internet only made sense when real consumers woul