The AI Gold Rush / A Future History Lesson?

Market reporting has recently been dominated by AI-related investment news. Massive capital commitments are fueling increasing investment and volatility in both in AI-related infrastructure and in the AI companies themselves.

With such massive amounts of “smart money” flowing into these investments, they have to be good . . . right? I mean, much like the internet, the industrial revolution and the electrification of the country, it seems that AI will change everything, won’t it?

But what about the foundational principles of investing? I’m not talking about whether AI can help us pick better investments. Here are the questions we should be asking: Are AI companies themselves good investments? Are things different this time? Is AI and its trajectory so significant that the foundational principles of investing no longer apply?

This is what Nat Guild, Founder of Apex Equity Research LLC and a Harvard and MIT educated expert in market risk analysis, examines in his most recent Substack post: The AI Gold Rush: Chasing the Rainbow / AI’s Biggest Problem Isn’t Promise – It’s Math. As Nat points out, as much as emotion moves markets, at some point it ultimately comes down to the math. Click here for his full article.

Since the events of today will inevitably be looked back on at some undetermined point in the future, Nat’s historical framing of the surge in AI-related investment may be giving us the benefit of “a future history lesson” today. As George Santayana famously stated: "Those who cannot remember the past are condemned to repeat it." Fortunately, Nat is remembering for us.

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