These days in Silicon Valley, many tech entrepreneurs are discussing the Dot-Com and AI booms. These booms involve hyper-optimistic visions for transforming the future. This means that investment is heavily concentrated in one sector, i.e., AI in 2025 and the Internet in 2000. In the early 2000s, most companies working on the Internet were small and fragile, whereas the companies working in AI are now financial giants rocking the world.

These are namely Microsoft, Google, Meta, and OpenAI. The business readiness in the early 1990s and now are very different. Internet adoption in the early 1990s was slow, and infrastructure like broadband was still developing.

In contrast, in this AI era, with 4G–5G internet, businesses are eagerly adopting it. During the 1990s, the Internet faced many legal hurdles, like Microsoft lawsuits, whereas AI currently faces few regulatory barriers. Interestingly, those dot-com giants were not worth more than $500 billion, whereas AI-related companies like Nvidia have a value of $4.5 trillion, with a combined market capitalization exceeding $17 trillion. The Dot-Com boom was a bottom-up movement, with thousands of startups emerging, whereas the AI boom is more elite-driven, with limited opportunities for those without expertise.

Finally, with such a boom in AI, there are equal worries about whether it will experience a crash similar to the dot-com era. But a satisfying factor is that the underlying technology and adoption trends suggest this AI boom may avoid a full-scale collapse like the dot-com, because products are immediately valuable, large companies provide a cushion, and revenue growth is significant and widespread.