The issue is that capital is controlled mainly by old out of touch finance people who are easily wowed by curated tech demos.
And unfortunately, even the people wise to the fact that the tech isn’t as incredible as it’s presented also are incentivized to invest because of the opportunity cost.
Wall Street is a casino, and all too often we see risk, aspiration, and even recklessness sold as 'vision' or 'innovation.'
It is a little odd to see Microsoft being taken in like this though. or at least this exec. But I suppose nothing should surprise me.
I for one believe that most people who invest in whatever hype driven bubble that comes out of the tech industry knows that it’s likely not going to pan out, but also believes that not investing in it has greater potential loss. And they just assume that they will get out before the bubble bursts, and if not, hey, they’re “too big to fail”.
I would agree. The AI bubble is real. To be fair, it's been pretty obvious for some time...listen to anything Jensen Huang has said over the last couple years and it's obvious that it is at best quite optimistic, at worst pure baloney. It's just a question of when and how hard it pops. And it might pop more than once. AI is here to stay, but this high-on-their-own-supply vibe of heedless adoption is unsustainable because reality is going to bite.
But, as you say, even people who should know better are jumping in due to FOMO.