The AI Black Hole: Why the Bubble Won’t Burst

Author(s): Shenggang Li

Originally published on Towards AI.

Rethinking the “AI Hype” through Economics, Reinforcement Learning, and Game Theory

Every few decades, a new technology arrives that captures both our imagination and our capital.
In the late 1990s, it was the internet. In the mid-2000s, housing.
And today, it’s artificial intelligence.

The article explores the current AI boom, arguing that unlike past speculative bubbles, this one is rooted in tangible assets and a self-reinforcing economic model. While skeptics point to a disconnect between investments and immediate profits, the piece asserts that AI’s integration into industries creates a feedback loop that encourages further investment and innovation. It is posited that this momentum will sustain the market despite potential localized downturns, redefining dynamics in both corporate and geopolitical landscapes.

Read the full blog for free on Medium.

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Published via Towards AI