AI crash could be more severe than dot-com bubble, warns NYU professor

NYU finance professor Aswath Damodaran warns an AI sector crash would be more severe than the dot-com bubble, amplified by massive debt-financed physical infrastructure investments unlike the lightweight software model

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The fact

Beyond financial risk, AI's business model fundamentally relies on massive job displacement with unclear societal consequences

Even with technological success, the industry faces exposure to sharp correction due to fragile economic fundamentals

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