Comment by athrowaway3z
10 days ago
Counter prediction. AI is going to reduce the (relative) wealth of the tech companies.
AWS and Facebook have extremely low running costs per VPS or Ad sold. That IMO is one of the major reasons tech has received its enormously high valuation.
There is nuance to that, but average investors are dumb and don't care.
Add in a relatively high fixed-cost commodity into the accounting, and intuitively the pitch of "global market domination at ever lower costs" will be a much harder sell. Especially if there is a bubble pop that hurts them.
History would indicate that if the you make a bubble big enough and then it pops, you don't have to clean up the mess. 2008 wasn't that long ago.