Unlike previous tech cycles, these investment requirements would not fade as the industry matures and might even intensify. The third area where AI departs from previous tech revolutions is in the weakness and fragility of network effects. Earlier tech platforms grew within largely siloed markets: Google dominated search; Amazon focused on retail. Historically, equity incentives enabled tech companies to hire and retain talent, acquire intellectual property, and expand through mergers and acquisitions. In this sense, AI more closely resembles the capital-intensive industries of the mid-20th century than the asset-light tech models of the past few years.

Source: Taipei Times January 27, 2026 17:31 UTC