alt Hacker NewsThe internet bubble popping did not cause internet traffic to decline -- on the contrary internet traffic increased rapidly during the bubble pop.
Similarly, I don't think the AI bubble popping will cause token demand to decline. On the contrary, I predict the bubble pop will happen because of a recognition that tokens are a highly competitive industry, thus the margins of frontier AI firms aren't sustainable, popping their valuations.
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I don’t buy this argument. Everyone who suggests there’s a bubble speaks about the excessive data center buildout, low demand, excessive debt financing.
All of these arguments don’t matter if you think demand will increase.
What bubble is left? Really. Just people with OpenAI or Anthropic exposure? Not that high.
That's right. Jevon's Paradox won't matter when token prices are falling by orders of magnitude