Are the current economics viable indefinitely? I think not. This AI investment exuberance will be curbed as soon as investors start demanding returns, and we've already seen harbingers of that (the Deep Seek market scare). What appears to be a quadratic growth curve inevitably turns out to be sigmoid.
Right now, the Hype train is at maximum speed and seems unstoppable. Despite the early hype, the Internet didn't replace colleges or brick and mortar stores[1], iPads didn't kill computers[2], and AI won't replace software engineers. This is not to say there will be no impact, but it's being oversold.
1. Khan academy and Amazon notwithstanding. But physical retail stores are still here and doing okay, and have adjusted to leveraging the new paradigm.
2. Leading up to peak iPad, it was believable that the iPad would kill PCs - it was an unstoppable juggernaut lifting Apple profits to record heights https://www.bloomberg.com/news/articles/2012-03-21/ipad-the-...