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Not all exuberance is irrational

Tong Kooi Ong + Asia Analytica
Tong Kooi Ong + Asia Analytica • 3 min read
Not all exuberance is irrational
The economics of AI may become so concentrated that being wrong about the eventual winner is more dangerous than overestimating the size of the prize. Photo: Bloomberg
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A lesson from history

Transformative technologies do not always produce transformative investment returns. Railways changed the world. Airlines transformed travel. Telecommunications connected the planet. Fibre-optic networks enabled the modern internet.

Yet many of the companies that built these systems failed financially. Global Crossing and WorldCom helped build communications infrastructure that society continues to benefit from.

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