Power Loop

In Silicon Valley and venture capital, the "power law" is crucial: a few companies generate the majority of returns. Currently, the leading companies in AI, often with novel structures, are driving these outcomes. Joe Grundfos from Stanford referred to this as the "AI pixie dust" phenomenon, similar to past tech cycles like dot com, cloud computing, and mobile, where companies used buzzwords to signal innovation. AI represents the latest cycle in this ongoing pattern, as described in Michael Lewis's book The New New Thing about the dot com boom.