I sat down with Paul Kedrosky - investor, researcher and one of the smartest voices out there on the economics of AI and the risks of a bubble.

Here are a few of the questions we talked about:

• What is a bubble?
• Is AI a bubble?
• How does it compare to past bubbles?
• What would cause the bubble to burst?
• Why should the average person care?
• Will we see a bull market in laser tag in all the abandoned data centres?
• What needs to be true for AI to NOT be a bubble?

More info about Paul

Paul Kedrosky is an investor, writer, and researcher. He has been a regular on-air contributor at CNBC and Bloomberg, and has written for the New York Times, the Wall Street Journal, and publications around the world.

Paul started as an engineer, became a quota-carrying salesperson, then a technology equity analyst on Wall Street, and eventually a venture capitalist. He has started companies, held academic positions in the U.S. and Canada, has a popular newsletter, and is a research fellow at MIT's Institute for the Digital Economy. His Ph.D. research focused on risk, adoption, and path dependence in finance and technology.

Where else you can listen

⁠⁠Youtube⁠⁠ - https://www.youtube.com/@HumansintheLoopPod

Apple podcasts⁠⁠ - https://podcasts.apple.com/us/podcast/humans-in-the-loop/id1831285114

Spotify - https://open.spotify.com/show/4BbslJR0KA5bfqrcYRhJER?si=b5a46211098b4f3e

Or wherever you get your podcasts!

Chapters

00:00 The AI Bubble Debate

06:44 Understanding Bubbles and Their Characteristics

12:04 Historical Context: Railroads and AI

17:51 The Call Option on AI's Future

19:29 The Necessity of Bubbles for Progress

25:31 Consequences of Stranded Assets

26:51 The Dilemma of Data Centers

28:46 The AI Bubble Dynamics

31:20 The Impact of Economic Bubbles on Society

34:06 The Interconnectedness of Global Financial Systems

36:17 Public Sentiment Towards AI and Job Security

38:18 The Fallacy of Technological Inevitability

40:20 Regulatory Challenges in a Globalized Economy

42:50 Predicting the Burst of the AI Bubble

45:37 Market Sentiment and AI Valuations

49:21 The Token Economy and Its Implications

52:28 Possibilities of Change in the Current Landscape

54:57 The Future of Work and Economic Stability

Links

https://paulkedrosky.com/

Get in touch

⁠Instagram⁠ - https://www.instagram.com/humansinthelooppod/

Email: ⁠seb@theuncommonfounder.com⁠

Website: ⁠https://www.theuncommonfounder.com