Monday Morning Moan - how the AI valuation debate is missing the point about the boundary problem
Making the rounds this week is investment speculation surrounding the potential valuations of SpaceX and Anthropic. OpenAI may or may not be that far behind now given that their dispute with Elon Musk was recently settled on procedural grounds. If they succeed in attracting the kind of valuations being suggested, it could magically create something like $4 trillion or so in new equity, seemingly out of thin air.
Skeptics are rightly asking whether this is a prelude to the WorldCom debacle in the hype-driven mania leading up to the dotcom bust. It still worked out eventually with all the mobile and cloud waves that followed even though things did not pan out for most early boosters. This week people are talking about some of the interesting and apparently legal accounting mechanisms not to mention data center capacity schemes being leveraged to support the current investment spectacle. Circular accounting loops and...
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