‘AI capex is immense’: Aswath Damodaran warns AI correction may be more painful than dot-com meltdown

As artificial intelligence attracts trillions of dollars in investment worldwide, valuation expert and NYU Stern School of Business professor Aswath Damodaran is warning that the risks associated with the current AI boom may be far greater than those seen during the dot-com era.

Damodaran, known as the “Dean of Valuation,” believes the ongoing AI race differs significantly from the internet boom of the late 1990s, not only in the scale of investment involved but also in the way the sector is being financed.