What if AI isn't as scalable as expected? Investor weighs in

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What if AI isn’t as scalable as expected? Investor weighs in

Yahoo Finance Video and Josh Lipton

Sun, February 22, 2026 at 4:00 AM GMT+9

In this video:

  •                                       StockStory Top Pick 
    

    HLNE

    -5.29%

Hamilton Lane (HLNE) Co-CEO Erik Hirsch addresses what he sees could happen if AI large-language models can’t live up to their scalability promises.

Also be sure to watch Erik Hirsch compare AI’s rapid growth to the advent of electricity that opened the door in previous industrial revolutions.

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime.

Video Transcript

00:00 Speaker A

One question you raised Eric, which I think is interesting. you ask, what if large language models aren’t as scalable as advertised? That that’s that’s a good question. What would happen, Eric? I mean, think through that. Who would be, I mean, who would be most exposed?

00:15 Eric

Well, in that case, you’re going to see a huge negative impact to the public market because the public market to me right now is completely tied to two key aspects of AI today, which is the large language models and the chip producers. That is all geared around sort of the same general theme. In the private markets, AI diversification is much wider because you’re sort of seeing AI agents and AI powered startups which are getting funded by private venture capital businesses. So much more diversity there. But if the LLM’s are not as advertised or not bringing, I mean what let’s step back. What’s the public market telling us with the LLM providers? They’re telling us that this is going to develop in such a way that their revenue is going to be a juggernaut and that companies are going to be willing to pay for that service because they’re going to be generating enormous cost saves on the other end. If that transition doesn’t happen at the pace and the rate that the public market is expecting, we’re going to see a huge pullback on those stocks.

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