Good morning,

You've likely heard about the "AI Bubble" from YouTube or social media by now, and it's been closely tied to fear of a possible crash like the one we saw in 2000s.

I've been getting a lot of messages from you guys asking if you should be worried. If your AI tools are going to disappear. If this whole thing is about to come crashing down.

So let me break this down for you.

What This "AI Bubble" Actually Is

The AI bubble is pretty simple to understand. Investors have been throwing massive amounts of money at anything with "AI" in the name.

We're talking about companies getting billion-dollar valuations even though they're not making much money yet. Some companies are valued at 40 times their actual revenue.

People are getting scared because they remember what happened in 2000s. When bubbles burst, a lot of people lose money fast.

But in my opinion…

This bubble burst won't kill AI. It'll just kill the junk.

Why I’m Not Afraid Of A “Bubble Burst”

Look, I'm not a financial expert. But I know one thing…

AI is there to stay, and for good practical reasons.

Sure, a bubble burst can be a pain to deal with in the short term just like every market crash.

But AI technology itself is here to stay, just like the what happened with the internet after the dot-com crash.

1. A Huge Rebound Just Like What Happened After The Dot-Com Crash In The Early 2000s

• Dot-com crash in 2000: Hundreds of internet companies went bust overnight, but Internet technology became more important than imagined after the crash

• Survivors like Amazon and Google became the biggest companies in the world

• Crash cleared out companies burning money without solving real problems

• Companies with actual value thrived after the cleanup

• Same pattern will happen with AI: Overvalued companies will crash, valuable ones will survive and grow bigger

• AI will become as essential as the internet is today

2. The Government Won't Let AI Companies Fail

• US government considers AI a matter of national security

• America is in a technology race with China for AI dominance

• AI controls the future of military, economy, and infrastructure

• Government won't let important AI companies crash and disappear

• Companies like Nvidia (AI chips) and OpenAI are too critical for national defense, and even after a crash, their chips and infrastructure are still in place and needed

• Government will provide bailouts/support if needed (like 2008 banks, CHIPS Act for semiconductors)

What This Means for You And Me As Business Owners

The companies making real tools that solve real problems? They'll not only survive, they'll get stronger as competition disappears.

Think about the AI tools you use every day. ChatGPT helps you write better. Claude helps you analyze data. AI automation saves you hours of work.

These tools solve real problems for real people.

They're not going anywhere.

If anything, they'll get better and cheaper as the market clears out the junk.

The practical applications of AI that are already working in your business will keep working and improving.

What You Should Do Right Now

Don't panic. Seriously.

Keep using the AI tools that are working for your business. Keep learning new ones. Keep automating your processes and improving your operations.

If anything, a bubble burst will make AI tools cheaper and more accessible.

The surviving companies will have less competition and more resources to make their products better.

Focus on the practical stuff.

Use AI for real business problems like writing, customer service, data analysis, automation.

But what do you think?

Talk soon.

Brian