Tech industry builds in the ruins again

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Silicon Valley's favorite bank has failed, while its top firms continue to lay off hordes of workers. But at the same time, industry leaders foresee vast new growth spurred by AI.

If that split-screen snapshot looks confusing, remember that tech's story is one long boom-bust cycle. Each new era gets built upon the ruins of the past.and you'll see that all of tech's great transitions have unfolded in times of financial turmoil.

The rates Volcker set back then, duplicated today, would flatten 2023's overextended banks and businesses.onto the global internet in the early '90s, happened as the U.S. struggled to restart its business engines after another recession — and Bill Clinton captured the White House under the banner, "It's the economy, stupid."

For now, today's generative AI projects like ChatGPT, the new Bing, and image-creation tools like Midjourney and DALL-E require vast computing resources and cost a fortune to run.

 

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