US EditionThe AI Bubble Is Heading Towards a Burst but It Won't Be the End of AI
Major tech firms spend over $200 billion annually on AI while investors grow cautious amid warnings from top financial authorities about stretched valuations and bubble risks.
- In recent weeks, the International Monetary Fund, Bank of England, the head of the largest US bank, and Sam Altman, OpenAI boss, warned of a possible AI bubble as the IMF says risk assets `screen well above fundamentals`.
- Amid historic data-centre builds, Microsoft, Google, Amazon, Oracle and Meta spend more than $200 billion annually while global AI capital spending forecasts reach $375 billion in 2025 and $500 billion in 2026.
- Ramp's corporate-spend index shows a dip to 43.8% of U.S. businesses paying for AI, while Evercore's survey finds 67% believe a bubble is inflating and analysts warn of circular funding risks.
- James Poskett warns a correction may end many companies, damaging those involved in AI investment while consumers face less choice, higher prices, and slower product updates.
- Historians and technology scholars cite railroads and dot-coms as parallels while IDC projects global AI spending to top 1 trillion by 2030, signaling enduring scale despite possible correction.
24 Articles
24 Articles
Times of India
The Economic TimesExperts warn AI could trigger next global stock market crash — here’s what might happen
Experts are warning that the stock market could face a big crash because of the high prices of AI company shares. Many believe AI stocks are overvalued, like the internet bubble years ago. Some experts think strong profits may prevent a crisis, but others fear a global market fall could still happen soon.
AI boom starting to feel 'bubblicious' with fears it will burst
Investors are pouring hundreds of billions of dollars into artificial intelligence ventures, raising fears that stock prices won't match profits and lead to a bursting bubble that sends shockwaves through the economy.
The AI boom isn't a bubble — it's barely begun, Goldman Sachs says
Some investors are on edge over a possible AI-fueled bubble as billions pour into the technology.JOHANNES EISELE/AFP via Getty ImagesThe AI gold rush has barely begun, and there are trillions on the line, Goldman Sachs says.Today's AI outlays are small compared with past revolutions like railroads and the internet, wrote analysts.But history shows first movers might not be the biggest winners.The markets may be fretting about an AI bubble, but G…
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