Is there an AI bubble? Two investors debate it on Ezra Klein's podcast

On 16 October, The Ezra Klein Show debated whether AI investment is a bubble. Paul Kedrosky, a partner at the venture capital firm SK Ventures, argues that it is: like the railways or electrification, the data centre build-out will end in overcapacity, it is increasingly financed with debt, and competition between companies stops them from slowing down. Azeem Azhar, author of the Exponential View newsletter, sees real demand and a shortage of computing capacity, and would only worry if companies' AI spending grew half as fast for two quarters in a row.

In the end they agree on one thing: both expect rules for AI. Kedrosky believes they will come after some serious incident and will look like the rules for medicines or nuclear power. Azhar says self-regulation doesn't work.