Two videos worth watching. The first one is an interview with the Chinese economist Andy Xie. He argues that the current AI race resembles a classic financial bubble (hype, easy capital, fear of missing out). What interests me are the differences in the Chinese approach compared to the American one: focus on low-cost solutions, focus on real world applications, different perception of approach to money.

The second video is Hank Green worrying about “circular” money flows in AI—i.e., Nvidia investing in OpenAI that then spends heavily on Nvidia’s chips—masking true demand.

Right now, most of the value accrues to chipmakers rather than to real-world applications. In time, we’ll see if/when, how, and where those massive investments are going to yield substantial returns from such applications.