Nobel laureate economist Paul Krugman stated that artificial intelligence resembles the dot-com bubble, but the outcome could be very different. Highlighting that the stars of the Magnificent Seven are artificial intelligence, Krugman drew attention to Silicon Valley’s return to the political arena. The world of technology has turned towards artificial intelligence. Over 900 billion dollars in investments are expected by 2027. The rapid development of artificial intelligence is also on the agenda of globally renowned economists. Nobel laureate economist Paul Krugman expressed that the frenzy around artificial intelligence has tones similar to the dot-com bubble but the ending could be different. In an article published on Substack, Krugman pointed out that the dizzying valuations of some technology stocks and mass excitement about the future are reminiscent of the dot-com bubble. Krugman used the expression, “While the artificial intelligence fever may closely resemble the dot-com bubble, the endgame could be quite different.” “NEW TECHNOLOGY STRENGTHENS THE HIERARCHY” According to Krugman, during the dot-com crisis in the 2000s, investors expected newly established companies to become highly profitable quasi-monopolies. The renowned economist mentioned that The Magnificent Seven lead the way in artificial intelligence. Emphasizing that historically major technologies tend to disrupt the market hierarchy, Krugman stated, “This time (with artificial intelligence), investors are expecting the radical new technology to strengthen the hierarchy.” The technology giants referred to as The Magnificent Seven include Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. CHANGES IN SILICON VALLEY Krugman also drew attention to the changes in Silicon Valley, noting, “Silicon Valley had largely disconnected from politics a quarter century ago. Now, major technology leaders like Jeff Bezos and Mark Zuckerberg have close ties with the government.” The US technology index Nasdaq 100 has risen by over 80% since the launch of ChatGPT in late 2022. Analysts are expecting the market to rise even further this year.