I wouldn't necessarily call it a bubble. There has been a breakthrough in AI recently, and now we see the new companies following that. Of course, 95% or so will fail, and the invested money is gone, but that happens basically with every new technology shift. From my point of view, what is needed for a real investment bubble is that the investors are not aware that there is a high failure rate of AI startups, but I don't think that is the case here.

For comparison, in case of the crypto bubble, there's really a huge community that thinks BTC or other cryptos will go "to the moon" and they seem to be immune to common investing fundamentals.

I think the usage of the term "bubble" could use a little sharpening. In this context, for example, you could also use "gold rush" for an entirely different (yet similarly vague) effect.

A bubble implies there's little or no actual value inside. I disagree completely.

As a senior software engineer that has fully integrated GPT-4 into my dev process, I can assure you there is definitely value here. I would say these LLMs (or where we go from here) are going to be at least as transformative as the smartphone.

until you can run OpenAI’s offerings on your laptop.

https://www.semianalysis.com/p/google-we-have-no-moat-and-ne...

Which is itself just a titanic wrapping on a gigantic effort, to convert all human knowledge into a spreadsheet - and becomes instantly tained by echolalia, as the AI output poisons itself.