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

> Source: <https://the-decoder.com/nyu-finance-professor-damodaran-warns-an-ai-crash-could-hit-harder-than-the-dot-com-bust/>
> Published: 2026-06-20 12:26:57+00:00

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.

The 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).