Are we in a bubble?

Kevin Mu is an investor from Translink Capital who wrote a detailed piece examining the differences between today’s interest in AI and the late-90s internet bubble.

tldr: no we’re not in a bubble.

Differences

• Companies this time have actual revenue (OpenAI generates more than the combined total of Google, Facebook, Amazon in their third years of revenue). > Other AI companies with notable revenue traction include Anthropic (~$200 million run rate), Writer ($100 million), Cohere ($35 million) Glean ($50 million+), Heygen ($20 million+), Perplexity ($20 million+) and more.

• Both cycles are occurring in the middle of an equity bull market, BUT the economic environment differs so investors are far more risk averse.

• Most funding today is private

• Internet funding involved lots of debt; not today