Baker says Internet bubble scars with 80-85% drawdowns keep a lid on tech valuations today.
“In the bubble, you went down 80 or 85. Dramatically different. And so the scars are so deep from that bubble that just that puts a lid on tech valuations.”
Baker compares current AI buildout to internet bubble risks if debt-funded rather than cash flow-funded.
“So if supply and demand get a little bit out of whack, things can unwind very, very, very quickly. That's what happened in the Internet.”