Cory Doctorow's Pluralistic: AI Solipsists and AI Cynics in 24 Jul 2026
| Source: Mastodon | Original article
AI investors focus on market trends rather than company performance. They profit from price spikes driven by other investors.
Cory Doctorow's latest Pluralistic post highlights the dynamics of AI valuation, where investors' perception of AI's potential can drive up prices. The key to making a profit is not necessarily identifying businesses with growing profitability, but rather those that other investors will flock to, causing a price surge. This phenomenon is particularly relevant in the context of AI, where the question of whether an AI salesman can convince bosses to replace workers with AI can significantly impact AI valuation.
This matters because it underscores the often-detached relationship between AI's actual capabilities and its market value. As long as enough investors believe in AI's potential to replace human workers, AI valuation will continue to climb. However, this also means that if the market becomes disillusioned with AI's capabilities, valuations could crash.
As the AI landscape continues to evolve, it will be important to watch how investors and businesses navigate these dynamics. With the recent OpenAI cyber-attack sparking discussions about AI's limitations, it remains to be seen how the market will respond to the potential risks and benefits of AI adoption. As we reported on July 24, the OpenAI incident highlighted the complexities of AI development and deployment, and the latest insights from Doctorow's Pluralistic post add another layer to this ongoing conversation.
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