I am increasingly coming across articles claiming that "the" AI bubble is about to burst. To begin with, this is an undifferentiated statement that abstracts away from reality - and as Hegel once so aptly put it: "To impose abstractions upon reality is to destroy reality."

What I mean by this is that reality is far more complex; I am convinced that there is no single "bubble" waiting to burst. I wrote about this in detail in my newsletter today. In short, while there are certainly financial challenges, the current situation is fundamentally different from historical bubbles like the dot-com era. There is genuine real-world usage, actual revenue, tangible future-oriented sectors, and a real economic impact - all of which will justify the investments made. I am certain of this.

That said, market corrections are likely, as there is currently a great deal of capital flowing into almost any startup that happens to have "AI" in its name- a trend that probably cannot continue indefinitely. However - and this brings me back to my point about the danger of over-abstraction - I do not believe that "the" bubble is going to burst. I plan to write more extensively on this in the coming days, as it will likely be the most significant topic over the next few months - especially following the sharp decline of CoreWeave, which has reignited market concerns about a potential "bursting of the bubble."