The Benefits of Bubbles 13 minutes read.
"What Perez got right is that bubbles install physical capacity; what Hobart and Huber added is that they also create cognitive capacity, thanks to everyone pulling in the same direction at the exact same time, based not on fiat, but on a shared belief that this time is different. [...] And meanwhile, there are massive investments by every hyperscaler and a host of startups to make new chips for AI that promise to be cheaper, faster, more efficient, etc. All of these efforts are getting funding in a way they wouldn’t if we weren’t in a bubble." -- In today's AI bubble, there is funding to try risky ideas that can create new waves of innovation and progress. Ben Thompson explains how some bubbles are healthy and why 2025's bubble is important for future growth.
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