Regulating models like medicines would be a category error.
The pre-approval instinct is understandable. It is also the wrong tool for software that ships weekly.
The AI trade is not a bubble. It is three bubbles wearing a coat.
Infrastructure, applications, and narrative are inflating on different clocks. Do not confuse them.
Photograph: tek54
Calling the AI trade “a bubble” is lazy, because there are at least three distinct things inflating, and they will not pop together.
- Infrastructure: real revenue, real capex, genuinely cyclical.
- Applications: mostly promise, priced as if it were already proof.
- Narrative: the part that moves on vibes and a single keynote.
Bet against the coat and you will be right eventually, and broke first.
