Gerstner argues AI follows the 1998-99 internet pattern: overpriced short-term but underestimated long-term impact.
“But much like the Internet in 9899, where there was overpricing in the short run, we dramatically underestimated the impact it was going to have over the preceding decade.”
Gerstner argues AI wave differs from internet era because hyperscalers are deploying massive capex directly, not customers.
“because all AI tools are being delivered as a service in the cloud, there's just a massive amount of CapEx happening.”