No, AI is NOT like the DotCom bubble. Don't believe their B.S.
Internet of Bugs 10:55
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https://Patreon.com/InternetOfBugs or https://InternetOfBugs.com
"They spent a long time trying to convince you that AI wasn't a bubble, but it is. And it’s not the dot-com boom they want you to believe it is."
A lot of tech commentators are rewriting history, claiming that once the current AI hype clears, we’ll step into a prosperous new world just like we did after the 2000 tech crash. But I lived and coded through the dot-com bubble, and the fundamentals here are completely different.
In this video, I break down why current generative AI infrastructure is actually closer to the cryptocurrency bubble, why the promised productivity gains aren't showing up, and how giant data centers are creating a centralized system designed for rent-seeking rather than distributing economic opportunity.
In this episode:
* The real anatomy of the dot-com bubble (and the "last mile" problem).
* How crypto hardware just rolled over into the AI hype cycle.
* Why data center chips lose value rapidly compared to old telecom fiber.
* How the AI bubble centralizes power into monopolies instead of lifting smaller innovators.
Join our Patreon community for exclusive videos, text chats, and weekly live calls: https://Patreon.com/InternetOfBugs or https://InternetOfBugs.com
0:00 - The AI Bubble Deniers Are Finally Admitting It
1:05 - The Reality of Surviving the Dot-Com Crash
1:54 - What Was the "Last Mile" Problem?
3:16 - The Crypto Bubble Comparison
4:38 - Generative AI vs. Reality: Where Are the Productivity Gains?
6:05 - The Massive Trap of Investing in AI Microchips
7:15 - Fiber Cables vs. Expiring Hardware Efficiency
7:44 - Technologies That Distribute Opportunity vs. Centralize It
8:54 - Giant Data Centers and the Threat of "Rent Seeking"
10:04 - Why the AI Bubble Is Extractive, Not Expansive
10:46 - Join the Internet of Bugs Patreon Community
Sources: Why what AI investment is buying won't be useful after the bubble:
// Limiting factor on Datacenters
https://www.datacenterdynamics.com/en/opinions/space-and-power-whats-really-limiting-data-center-capacity/
https://epoch.ai/data-insights/ml-hardware-energy-efficiency
// How long it takes before the power for data centers come online:
https://www.cnbc.com/2023/04/06/outdated-us-energy-grid-tons-of-clean-energy-stuck-waiting-in-line.html
// How the fiber from the DotCom bubble got more useful over time
[4] https://fiberbroadband.org/wp-content/uploads/2024/02/FBA-0018E_ScalabilityLongevity_WhitePaper_lv2.pdf https://connectorsupplier.com/fiber-optic-cable-the-faster-farther-future-of-high-speed-data-links/ https://www.tiafotc.org/optical-fiber-technology/
// How quickly datacenter hardware becomes less useful
https://www.census.gov/newsroom/archives/2015-pr/cb15-89.html
https://www.carboncollective.co/sustainable-investing/gigawatt-gw
https://www.prnewswire.com/news-releases/west-texas-5-000-acre-ai-data-center-site-fast-tracks-500-mw-behind-meter-power-302485357.html
https://coloradosun.com/2025/12/29/data-center-power/
https://www.pewresearch.org/short-reads/2025/10/24/what-we-know-about-energy-use-at-us-data-centers-amid-the-ai-boom/
// How the people who stand to ACTUALLY benefit from new datacenters try to gaslight the people who have to live near them
#AIBubble #TechHype #DotComBoom #Crypto #DataCenters #SoftwareEngineering #InternetOfBugs #TechMonopolies
https://www.brookings.edu/articles/turning-the-data-center-boom-into-long-term-local-prosperity/
"They spent a long time trying to convince you that AI wasn't a bubble, but it is. And it’s not the dot-com boom they want you to believe it is."
A lot of tech commentators are rewriting history, claiming that once the current AI hype clears, we’ll step into a prosperous new world just like we did after the 2000 tech crash. But I lived and coded through the dot-com bubble, and the fundamentals here are completely different.
In this video, I break down why current generative AI infrastructure is actually closer to the cryptocurrency bubble, why the promised productivity gains aren't showing up, and how giant data centers are creating a centralized system designed for rent-seeking rather than distributing economic opportunity.
In this episode:
* The real anatomy of the dot-com bubble (and the "last mile" problem).
* How crypto hardware just rolled over into the AI hype cycle.
* Why data center chips lose value rapidly compared to old telecom fiber.
* How the AI bubble centralizes power into monopolies instead of lifting smaller innovators.
Join our Patreon community for exclusive videos, text chats, and weekly live calls: https://Patreon.com/InternetOfBugs or https://InternetOfBugs.com
0:00 - The AI Bubble Deniers Are Finally Admitting It
1:05 - The Reality of Surviving the Dot-Com Crash
1:54 - What Was the "Last Mile" Problem?
3:16 - The Crypto Bubble Comparison
4:38 - Generative AI vs. Reality: Where Are the Productivity Gains?
6:05 - The Massive Trap of Investing in AI Microchips
7:15 - Fiber Cables vs. Expiring Hardware Efficiency
7:44 - Technologies That Distribute Opportunity vs. Centralize It
8:54 - Giant Data Centers and the Threat of "Rent Seeking"
10:04 - Why the AI Bubble Is Extractive, Not Expansive
10:46 - Join the Internet of Bugs Patreon Community
Sources: Why what AI investment is buying won't be useful after the bubble:
// Limiting factor on Datacenters
https://www.datacenterdynamics.com/en/opinions/space-and-power-whats-really-limiting-data-center-capacity/
https://epoch.ai/data-insights/ml-hardware-energy-efficiency
// How long it takes before the power for data centers come online:
https://www.cnbc.com/2023/04/06/outdated-us-energy-grid-tons-of-clean-energy-stuck-waiting-in-line.html
// How the fiber from the DotCom bubble got more useful over time
[4] https://fiberbroadband.org/wp-content/uploads/2024/02/FBA-0018E_ScalabilityLongevity_WhitePaper_lv2.pdf https://connectorsupplier.com/fiber-optic-cable-the-faster-farther-future-of-high-speed-data-links/ https://www.tiafotc.org/optical-fiber-technology/
// How quickly datacenter hardware becomes less useful
https://www.census.gov/newsroom/archives/2015-pr/cb15-89.html
https://www.carboncollective.co/sustainable-investing/gigawatt-gw
https://www.prnewswire.com/news-releases/west-texas-5-000-acre-ai-data-center-site-fast-tracks-500-mw-behind-meter-power-302485357.html
https://coloradosun.com/2025/12/29/data-center-power/
https://www.pewresearch.org/short-reads/2025/10/24/what-we-know-about-energy-use-at-us-data-centers-amid-the-ai-boom/
// How the people who stand to ACTUALLY benefit from new datacenters try to gaslight the people who have to live near them
#AIBubble #TechHype #DotComBoom #Crypto #DataCenters #SoftwareEngineering #InternetOfBugs #TechMonopolies
https://www.brookings.edu/articles/turning-the-data-center-boom-into-long-term-local-prosperity/
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