I'm Not Convinced the AI Bubble Exists

The author argues that the AI bubble may not exist, citing the high upfront costs of building data centers as a one-time expense rather than a regular operating cost, and the potential for AI to be profitable once these costs are paid off. The author suggests that the high spending of AI companies is not necessarily a sign of an impending bubble, but rather a necessary investment in infrastructure. According to the author, Anthropic's S-1 filing shows that they make $2.08 for every $1 of compute cost, indicating that AI can be profitable once infrastructure costs are covered.