Rudi: It’s not a bubble, AI’s next winners, and what investors are overlooking

While venture capitalists debate whether artificial intelligence has entered bubble territory, a contrarian thesis is gaining traction among sophisticated investors: the real money may not be in the AI companies themselves, but in the unsexy infrastructure and support services that Silicon Valley's latest gold rush will desperately need. The argument hinges on a historical pattern—those who sold picks and shovels during the California Gold Rush often outperformed the prospectors—but it requires investors to resist the gravitational pull of A.I.'s marquee names and place bets on far less glamorous businesses that few are paying attention to yet.

Livewire Markets·Aug 4