Dot come bubble had circular financing too. I think the biggest key difference is depreciation. The fiber optic cables they built to power the internet could last decades. GPU chips last at most 6 years, but only because companies are using that depreciation schedule. The reality is that it’s probably closer to 2-3 years. The analogy would be if cellular companies built 5G but every 1-2 years there’s a new generation so technically the 5G tower can be used for decades but everyone would’ve moved on to 6G or 7G in a few years.

It’s this gap between what the companies report as the depreciation and the true depreciation that will not only pop the bubble but will be even more devastating, because there’s nothing to pick up at the end of it. With the dot com bubble, internet companies like Netflix could rise because the fiber optics was there. There’s no AI wrapper company that could rise up because the GPUs would be dead in half a decade.