Dot – Com began 1995. PSI-net went public. It was one of the first internet providers. Bill Schrader was co founder of PSI-net. By July of that year, he was worth $105 million. By 2001, PSINet had declared bankruptcy.
The entrepreneurs were many, their investors were throwing money at them, some were swallowed by bigger tech companies, many became history of the emerging technological age.
End of dot-com. Companies failed or were absorbed eg. 2002 Cogent Communications absorbed PSI-net
https://www.cogentco.com/en/network/network-map
During the dot-com bubble, the technology-dominated Nasdaq Composite index (a representation of the total value of the outstanding shares of companies listed on the Nasdaq stock exchange) rose nearly sevenfold from 743 to 5,048, reflecting the early enthusiasm of investors in dot-com enterprises and the willingness of venture capitalists to finance the initial public offerings (IPOs) of Internet start-ups, many of whose share prices then skyrocketed.
https://www.britannica.com/money/dot-com-bubble
This was an era of investor overconfidence. The cost of borrowing had to be increased to cool the enthusiasm.
Between March 2000 and October 2002, the Nasdaq fell from 5,048 to 1,139, erasing nearly all of its gains during the dot-com bubble. By the time the index bottomed out in October 2002, most publicly traded dot-com companies had failed.
Nowadays, investors seem to have succumbed to the hype of companies offering Artificial Intelligence applications, being the latest ‘transformational innovation’.
they account for as much as 35.4 per cent of the S&P 500’s market capitalisation, almost triple what they were ten years ago.
However, they are by no means immune from the whims of the market.
In January, the launch of China’s Deepseek AI – developed supposed for just $6million compared to the many hundreds of millions required for the development of Western large language models – proved just how fragile the foundations of the Magnificent Seven are.
Nvidia, the world’s second largest company, which is worth more than the GDP of most countries, saw some $600billion fall off its market value
Today, Amazon announced it will soon be introducing AI to replace, and thus reduce, its entry level white collar jobs.
(Note: Amazon once boasted we would all be getting our Amazon deliveries via drones, not couriers).
See the link below, this presentation suggests that hopes for companies revolutionising and profiting from integrating AI into their operations may be naive:
https://mindmatters.ai/2025/01/the-ai-bubble-hype-reality-and-consequences/
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