Jerry Neumann takes a deep look at the investments happening in the AI space and concludes that AI will not make you rich, at least if you look at it like previous innovations:

The way to invest in AI is to think through the implications of knowledge workers becoming more efficient, to imagine what markets this efficiency unlocks, and to invest in those. For decades, the way to make money was to bet on what the new thing was. Now, you have to bet on the opportunities it opens up.

Like the web in the late 90s, we’re definitely in the frenzy zone. There‘s almost certainly a bust of some sort coming. But the really interesting stuff is what will come next. The question I’m asking myself is: What can you do to be ready for that? That doesn’t just include learning how to use the LLMs well. It extends to looking for the second- and third-order opportunities that are just over the horizon.