After years of hype and ballooning investment, the boom in artificial intelligence technology is beginning to show signs of strain. Many financial analysts now agree that there is an ‘AI bubble’, and some speculate it could finally burst in the next few months.
https://www.nature.com/articles/d41586-025-03776-0?utm_source=x&utm_medium=social&utm_campaign=nature&linkId=17794806
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In economic terms, the rise of AI is unlike any other tech boom in history — there is now 17 times more investment in AI than in Internet companies before the dot-com crash of the early 2000s.
And, valued at around US$4.6 trillion, the AI company NVIDIA was worth more than the economies of every nation except the United States, China and Germany.
But AI is not living up the promise of revolutionizing multiple sectors — nearly 80% of companies using AI found it had had no significant impact on their earnings, according to a report from management consulting firm McKinsey.
I mean there’s a non-zero chance it pops later today with the Nvidia earnings call lol
RIP to your retirement accounts. When this bubble bursts it’ll likely take the rest of us down too.
All those graphics cards are not going to pay off in any way before they’ve been obsoleted.