The Felder Report is already on my Links page. You can sign up to receive it for free. This week, Jesse points us to an article with the title, “The Second Derivative: Why No One Understands the AI Boom.” His suggestion is that the financial underpinnings of the AI boom are more like the subprime crisis in 2008- that is, a real estate issue- rather than a computing capacity issue. What he’s saying, and I find his argument compelling, is that the builders of AI capacity have to keep raising money at higher valuations in order to be able to pay the increasing costs of the borrowings required of them. And those valuations have already turned lower. When does it blow up? I don’t know and neither does he. But history tells us that these kinds of technological breakthroughs (railroads, farm mechanization, fiber optic cable, internet) leave us with something valuable but winners and losers are chosen along the way. It will be that way with AI. It’s a long article. Sorry. If you don’t read it all, at least let AI summarize it for you.