Episodes

Systemic Risks of Overbuilding in the AI Infrastructure Boom

Systemic Risks of Overbuilding in the AI Infrastructure Boom

The Prof G Pod with Scott Galloway

The current surge in AI data center construction resembles the railroad boom that led to the 1873 market collapse. In both cases, companies compete by spending heavily on infrastructure, which results in systemic overbuilding. Businesses that prioritize acquiring capacity over actual utilization face the risk of a sharp market correction once investors demand more financial discipline.

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