NYU finance professor Damodaran warns an AI crash could hit harder than the dot-com bust

NYU finance professor Aswath Damodaran warns that a potential downturn in the artificial intelligence sector could prove more damaging than the dot-com crash. He argues that unlike the internet boom, which relied largely on software, today's AI expansion involves heavy investment in debt-financed physical infrastructure that creates significant financial exposure regardless of the technology's ultimate success.