{"slug": "nyu-finance-professor-damodaran-warns-an-ai-crash-could-hit-harder-than-the-dot", "title": "NYU finance professor Damodaran warns an AI crash could hit harder than the dot-com bust", "summary": "NYU finance professor Aswath Damodaran warns that a potential AI crash could be more severe than the dot-com bust due to massive debt-financed physical infrastructure investments, and even if AI succeeds, replacing entire jobs poses societal risks.", "body_md": "NYU finance professor Aswath Damodaran believes a potential AI crash would be more painful than the bursting of the dot-com bubble because the industry is building massive amounts of debt-financed physical infrastructure rather than lightweight software. Even if AI succeeds, he sees a problem. The actual business model is to replace entire jobs, with unclear consequences for society.\n\nThe article [NYU finance professor Damodaran warns an AI crash could hit harder than the dot-com bust](https://the-decoder.com/nyu-finance-professor-damodaran-warns-an-ai-crash-could-hit-harder-than-the-dot-com-bust/) appeared first on [The Decoder](https://the-decoder.com).", "url": "https://wpnews.pro/news/nyu-finance-professor-damodaran-warns-an-ai-crash-could-hit-harder-than-the-dot", "canonical_source": "https://the-decoder.com/nyu-finance-professor-damodaran-warns-an-ai-crash-could-hit-harder-than-the-dot-com-bust/", "published_at": "2026-06-20 12:26:57+00:00", "updated_at": "2026-06-20 12:39:15.134380+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-safety", "ai-policy", "ai-ethics", "ai-infrastructure"], "entities": ["Aswath Damodaran", "NYU"], "alternates": {"html": "https://wpnews.pro/news/nyu-finance-professor-damodaran-warns-an-ai-crash-could-hit-harder-than-the-dot", "markdown": "https://wpnews.pro/news/nyu-finance-professor-damodaran-warns-an-ai-crash-could-hit-harder-than-the-dot.md", "text": "https://wpnews.pro/news/nyu-finance-professor-damodaran-warns-an-ai-crash-could-hit-harder-than-the-dot.txt", "jsonld": "https://wpnews.pro/news/nyu-finance-professor-damodaran-warns-an-ai-crash-could-hit-harder-than-the-dot.jsonld"}}