Item — HN Reader

This looks like the classic VC model:

1. Most AI ventures will fail

2. The ones that succeed will be incredibly large. Larger than anything we've seen before

3. No investor wants to be the schmuck who didn't bet on the winners, so they bet on everything.

2 comments

Most of the money flowing to the big players is from tech giant capex, originally from net cash flow and lately its financed by debt. A lot of these investors seem to now essentially be making the case that AI is "too big to fail". This doesn't at all resemble VC firms taking a lot of small bets across a sector.

Aka gambling.

The difference is that while gambling has always been a thing on the sidelines, nowadays the whole market is gambling.