Comment by refurb

Statement: if AI crashes where will the capital go?

Claim: people will just choose to not invest capital at all

Response: that’s the opposite of what we know about supply/demand. When a supply of something (desirable investments), goes down, with demand steady, prices go up

It’s the same thing that happened during zero interest rate environment - huge supply of capital, few places to put it, so it piled into tech which drove up prices

So I guess my answer to “where will the capital go?” is “the next best thing” which drive up prices of that thing