Are we repeating the Dot-Com bubble?

Excellent question — and one that many economists, investors, and technologists are actively debating right now.

Let’s unpack it carefully 👇

💭 Short answer:

AI has some “bubble-like” characteristics, but it’s not exactly like the dot-com bubble — at least not yet.

🧩 Similarities to the Dot-Com Bubble

1. Massive Hype

   • Just like “.com” was the buzzword of the late 1990s, “AI” is today’s magic term.

   • Companies are adding “AI” to their names or marketing materials to attract investment — sometimes without meaningful technology behind it.

2. Skyrocketing Valuations

   • AI startups are getting billion-dollar valuations with limited revenue or proven profitability.

   • Big tech stocks (like NVIDIA, Microsoft, and OpenAI’s ecosystem) have surged largely on AI excitement — similar to how Cisco, Yahoo!, and Amazon rose in 1999.

3. Speculative Investment

   • Venture capital and corporate investors are pouring huge sums into AI projects — some of which may never generate returns.

   • This echoes the speculative frenzy of the dot-com era.

💡 Key Differences

1. Real Adoption & Value Creation

   • Unlike many dot-com startups that had no working product, today’s AI is already producing tangible value:

     • Automating workflows

     • Enhancing productivity

     • Powering consumer products (ChatGPT, Copilot, Midjourney, etc.)

   • AI models are being used across medicine, finance, logistics, and creative industries.

2. Infrastructure Is Ready

   • In the 1990s, the internet was new and unreliable.

   • Today, global data infrastructure, cloud computing, and advanced chips make AI scalable and functional at a commercial level.

3. Sustainable Revenue Streams (for some)

   • Companies like NVIDIA and Microsoft are earning real profits from AI services and hardware.

   • That wasn’t the case for most dot-com companies.