"Big Tech companies have remained dominant for decades partly because of their platform models, which give them 'almost limitless pricing power' and make them 'almost impossible to dislodge.'"
"Pejic described that as a 'moat' against rivals, especially in an AI race characterized by 'tremendous infrastructure costs.'"
"The similarities include a game-changing technology, partnerships and financing deals between key players, the buildout of network infrastructure, and 'extreme' valuations."
"Pejic said an AI crash would 'not be as devastating as the dot-com bubble when it burst.'"
The AI boom may face a collapse, but it will not be as severe as the dot-com crash. Big Tech's dominance, characterized by their platform models and pricing power, provides a buffer against significant market declines. Companies like Alphabet and Microsoft have established a strong foothold, making it difficult for new entrants to gain market share. Additionally, Big Tech's ability to generate substantial cash flow allows them to invest heavily, creating a competitive advantage in the evolving AI landscape.
Read at www.businessinsider.com
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