AI bubble

Extracted Attributes

• Type

  Theorized stock market bubble

• Context

  Current AI boom, rapid progression in artificial intelligence

• Primary Concern

  Overvaluation of leading AI tech firms due to circular investments and massive spending

• Economic Indicators

  Consumer spending pullback, resurgent inflation, spike in youth unemployment

• Geopolitical Aspect

  AI Race between United States and China, differing regulatory approaches

• Comparison (Analyst Ray Dalio)

  Dot-com bubble

• Comparison (Analyst Julien Garran)

  17 times the size of the dot-com bubble, four times larger than the 2008 housing bubble

• Hallmarks of a Bubble (Analyst Goldfarb)

  Uncertainty, pure plays, novice investors, great narrative

Timeline

• ChatGPT's viral success drives many companies to pivot to AI, initiating the sense of an inflating bubble. (Source: web_search_results)

  2022-12-01

• Headlines about the AI bubble begin to appear. (Source: web_search_results)

  2023-05-01

• Ray Dalio states that current investment levels in AI are 'very similar' to the dot-com bubble. (Source: web_search_results)

  2025-01-01

• The unexpectedly successful launch of the Chinese-made chatbot DeepSeek raises concerns about a possible AI bubble, leading to a 17% drop in Nvidia's shares in one day (which later recovered 8.8%). (Source: web_search_results)

  2025-01-20

• Sam Altman, CEO of OpenAI, states his belief that an AI bubble is ongoing. (Source: web_search_results)

  2025-01-01

• A report by the Massachusetts Institute of Technology notes that despite US$30-40 billion in enterprise investment into Generative AI, 95% of organizations are not seeing returns. (Source: web_search_results)

  2025-08-01

• Analyst Bernstein tells CNBC's 'Squawk Box' that surging asset prices and extreme valuations indicate an AI bubble is the 'likely outcome'. (Source: web_search_results)

  2025-10-21

• Wired publishes an article titled 'AI Is the Bubble to Burst Them All', later updated. (Source: web_search_results)

  2025-10-27

• The Ringer publishes an article discussing the potential burst of the AI bubble. (Source: web_search_results)

  2025-11-04

• OpenAI's massive $1.4 trillion spending commitments intensify market fears of an AI bubble and impact stock prices of partners like Microsoft, Nvidia, Oracle, and Broadcom. (Source: b57125e8-1472-42cc-ad93-752ca0075b7f)

  Recent

• OpenAI's CFO, Sarah Frier, mentions a desire for a 'Federal backstop for AI' in the Wall Street Journal, a remark quickly walked back after being perceived as a bailout request. (Source: b57125e8-1472-42cc-ad93-752ca0075b7f)

  Recent

AI bubble

The AI bubble is a theorised stock market bubble growing amid the current AI boom, a period of rapid progression in artificial intelligence (AI) that is affecting the broader economy. Speculation about a bubble largely originates from concerns that leading AI tech firms are involved in a circular flow of investments that are artificially inflating the value of their stocks.

Web Search Results

• AI bubble - Wikipedia

  The AI bubble is an ongoing theorised stock market bubble, bearing similarities to the dot-com bubble, occurring during the AI boom, an ongoing period of rapid progression in artificial intelligence (AI) which has impacted the broader economy. Speculation about an AI-driven stock market bubble largely originates from concerns of overvaluations of leading AI tech firms, which are involved in a circular flow of investments that are believed to be artificially inflating their values. [...] ## Speculation [edit] Sam Altman, CEO of OpenAI and creator of ChatGPT, stated in 2025 that he believed that an AI bubble is ongoing. In early 2025, Bridgewater Associates co-investment officer Ray Dalio said that the current levels of investment in AI are "very similar" to the dot-com bubble. [...] In late January 2025, the unexpectedly successful launch of the Chinese-made chatbot DeepSeek "DeepSeek (chatbot)") resulted in concerns about a possible AI bubble. The stock prices of many AI companies dropped, such as Nvidia's shares dropping 17% in one day. Nvidia's share price recovered 8.8% the following day. In August 2025, a report by the Massachusetts Institute of Technology stated "despite US$30–40bn in enterprise investment into Gen[erative]AI, [...] 95% of organisations are getting

• Are we in an AI bubble? Here's what analysts and experts are saying

  Bernstein told CNBC’S “Squawk Box” last week that surging asset prices and extreme valuations indicate that an AI bubble is the “likely outcome.” He said that bubbles are defined by a vast gap between investment levels and the actual “credible expectations” for future profits. Bernstein pointed to OpenAI, which has already made around $1 trillion in AI deals, including a $500 billion data center buildout project, despite being set to generate only $13 billion in revenue. [...] The surge in enthusiasm for artificial intelligence has led to concerns that the AI boom is a looming bubble that will eventually burst. The euphoria is drawing comparisons to the dotcom bubble of the late 1990s and the 2008 financial crisis. Others see strong demand and a technological revolution with money that’s “well spent.” Image 7: Prediction of end tech hype of a controversial over promise Nicoletaionescu | Istock | Getty Images [...] It is tech’s biggest question, and there is a wide range of takes on every side. With artificial intelligence-driven spending leading to record deals and valuations, seemingly everyone is weighing in on the AI boom — and potential bust. Economic bubbles happen with a rapid rise in market values and asset prices in a specific area, often fueled by speculation, followed by a crash during which money is quickly taken out.

• The AI Bubble Is Far Worse Than We Thought | by Will Lockett

  Let’s start with the truly gut-flipping findings of Julien Garran. Garran is an analyst for MacroStrategy Partnership, an independent research firm that advises 220 institutional clients. He also previously led UBS’s commodities strategy team. Needless to say, he understands his subject material. But his recent analysis discovered that the AI bubble was 17 times the size of the dot-com bubble and four times larger than the 2008 housing bubble! ## Create an account to read the full story. [...] Everyone who isn’t a tech bro weirdo can see that the AI industry exists in a bubble. The big question so far hasn’t been “if” there is a bubble, but how large it is, when it will pop, and who it will affect. Sadly, because no one has a crystal ball, we can never hope to figure out when shit will truly hit the fan. But we have also struggled to pin down the size of this bubble, as the reality of AI economics has become muddied by Big Tech propaganda. Likewise, these corporations have

• AI Is the Bubble to Burst Them All - WIRED

  Since ChatGPT’s viral success in late 2022, which drove every company within spitting distance of Silicon Valley (and plenty beyond) to pivot to AI, the sense that a bubble is inflating has loomed large. There were headlines about it as early asMay 2023. This fall, it became something like the prevailing wisdom. Financial analysts, independent research firms, techskeptics, and even AI executivesthemselves agree: We’re dealing with _some_ kind of AI bubble. Advertisement [...] It’s worth reiterating that two of the closest analogs AI seems to have in tech bubble history are aviation and broadcast radio. Both were wrapped in high degrees of uncertainty and both were hyped with incredibly powerful coordinating narratives. Both were seized on by pure play companies seeking to capitalize on the new game-changing tech, and both were accessible to the retail investors of the day. Both helped inflate a bubble so big that when it burst, in 1929, it left us with the Great [...] So yes, Goldfarb says, AI has all the hallmarks of a bubble. “There’s no question,” he says. “It hits all the right notes.” Uncertainty? Check. Pure plays? Check. Novice investors? Check. A great narrative? Check. On that 0-to-8 scale, Goldfarb says, it’s an 8. Buyer beware. _Update 10/27/25 3:45pm ET: Due to an editing error, an earlier version of this story was initially published._ The AI Issue , and acknowledge our privacy policy. Read More

• How Catastrophic Is It If the AI Bubble Bursts? An FAQ. - The Ringer

  You've probably noticed that many people are saying we're in an AI bubble. "OpenAI's Sam Altman sees AI bubble forming," CNBC reports. "Fears of an AI bubble are growing," NBC News states. "AI Is the Bubble to Burst Them All," Wired announces. "Mark Zuckerberg says a ‘collapse’ is ‘definitely a possibility,’" Fortune declares. [...] You've probably also noticed that almost everyone who uses the term “AI bubble” starts to sound very boring and confusing immediately afterward. This is because the people who bring up the AI bubble tend to be market analysts, and most market analysts would rather have potatoes growing inside their bodies than talk like a normal person for four seconds.

• Instance Of

  Q207781