TL/DR:
The current AI boom in Asia shares similarities with the dotcom era, such as irrational exuberance, massive CAPEX, and transformative technologies.,Key differences include faster innovation, quality of companies, and AI's ubiquity across industries.
Introduction: AI boom in Asia
The AI era is accelerated by cloud adoption, generative AI, and large language models like ChatGPT.,Hyperscalers' CAPEX fuels AI growth, with more durable business models than dotcom companies.
Artificial Intelligence and AGI in Asia: Navigating the New Boom through the Lens of the Dotcom Era
Artificial intelligence (AI) and artificial general intelligence (AGI) are driving unprecedented growth and innovation across industries, particularly in Asia. As we witness this AI boom fuels Asian market surge, many are drawing parallels with the dotcom era, raising questions about potential bubbles and crash scenarios. In this article, we'll explore the similarities and differences between the two periods, focusing on examples from Asia to provide a rich and informative reading experience for a tech-savvy audience.
Irrational Exuberance 2.0 of a new Tech Boom
During the dotcom era, the phrase "irrational exuberance" was coined by Alan Greenspan to describe the unbridled enthusiasm and speculation in the stock market. Today, the AI boom has seen similar levels of excitement, with massive investments pouring into AI and AGI companies. However, the AI era is characterized by faster innovation and higher-quality companies leading the charge.
A Tale of Two Tech Booms: Dotcom vs. AI
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The dotcom bubble was fueled by a series of events, such as the Telecommunications Act of 1996 and the Y2K phenomenon. Similarly, the AI boom has been accelerated by cloud adoption and the rise of generative AI, exemplified by the release of OpenAI's ChatGPT. This language model has captured the world's attention and is poised to impact every company, industry, and individual, much like the internet did.
Massive CAPEX: A Common Thread
One striking similarity between the two eras is the massive capital expenditure (CAPEX) driving their growth. During the dotcom era, public telcos invested heavily in building out the internet infrastructure. Today, hyperscalers like Amazon, Google, and Microsoft are pouring billions into CAPEX to support cloud and AI initiatives. In fact, Nvidia's data center revenue was approximately equal to 50% of the hyperscalers' CAPEX last quarter, indicating a significant investment in AI infrastructure.
Differences Matter: Durability and Innovation
While there are similarities between the dotcom and AI eras, key differences set them apart. The AI boom is characterized by more durable business models, with hyperscale giants flush with cash, as opposed to dotcom companies drowning in debt. Additionally, the pace of innovation in the AI era is significantly faster, with technologies like large language models progressing rapidly.
AI and AGI in Asia: A Glimpse into the Future
Asia has emerged as a key player in the AI and AGI landscape, with companies and governments investing heavily in research and development. China, for example, has set its sights on becoming a world leader in AI by 2030. South Korea and Japan are also investing in AI to drive economic growth and improve public services.
Examples of AI and AGI applications in Asia include:
Alibaba's City Brain: A smart traffic management system using AI to optimize traffic flow in Chinese cities.,Baidu's Apollo: An open-source autonomous driving platform collaborating with companies across Asia.,SoftBank Robotics: Developing humanoid robots for various industries, including retail, hospitality, and healthcare.
Comment and Share on the AI boom in Asia:
Have you witnessed the impact of AI and AGI technologies in your region? How do you think the AI boom will fuel Asian market surge compared to the dotcom era? Share your thoughts in the comments below and don't forget to Subscribe to our newsletter on AI and AGI developments in Asia and beyond.
Latest Comments (5)
This piece really makes you think, doesn't it? I’m curious, though, how much of this "AI bubble" fear is genuinely about the tech and how much is simply investor FOMO driving valuations sky-high? It feels a little like history repeating itself, but with a different flavour.
This really hit home for me. Here in Singapore, everyone's talking about AI, and it sometimes feels a bit like those heady days before 2000. My firm is investing heavily, but I'm always wondering if we're building on solid ground or just hype. The article makes some excellent points about learning from history.
This piece really makes you think, especially watching companies here in the Philippines jump on the "AI" bandwagon. Just last year, a local tech firm I know rebranded everything with AI buzzwords, but honestly, their core offering barely changed. It feels a bit familiar to how things were a while back, remember? The hype is definitely building.
This article really hit the nail on the head. So many parallels to the dot-com bubble, especially with the hype machine cranked to max here in Asia. Everyone's jumping on the AI bandwagon, hoping for that quick buck, but not enough people are doing their due diligence. It's a real worry.
Well, the dotcom bubble was about *delivery* and *access*. AI's about fundamental *capability*, a whole different ball game, innit?
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