Aswath Damodaran: Why AI Needs $10 Trillion in Revenue to Work

About this episode

In this episode of the BiggerPockets Money Podcast, Mindy Jensen and Scott Trench sit down with Professor Aswath Damodaran, one of the world’s leading experts on valuation and a professor of finance at NYU Stern School of Business, to unpack whether the massive excitement around AI is justified by the numbers. They explore the billions being invested in AI infrastructure, how much revenue AI companies would need to justify today’s valuations, the risks of overinvestment and an AI bubble, and how investors should think about mega-cap tech stocks in an AI-driven market. Aswath also breaks down the potential impact of AI on employment and the broader economy, why storytelling can distort investment decisions, and why diversification and sound valuation principles matter more than ever. To go beyond the podcast: • Interested in a Flat Fee Financial Planner? Go to https://biggerpocketsmoney.com/fipro/ • Interested in Learning More About Buying a Franchise? Check out: biggerpocketsmoney.com/franzy • Get 50% Off Your First Year of Monarch by using code ‘Pockets’: https://www.monarch.com/pockets We believe financial independence is attainable for anyone no matter when or where you’r