
AI's Economic Reckoning: Is the Tech Bubble Set to Burst?
Massive investment in AI is raising concerns about a potential economic bubble, as high costs and questionable profitability models challenge the industry's stability.
41 articles tagged

Massive investment in AI is raising concerns about a potential economic bubble, as high costs and questionable profitability models challenge the industry's stability.

A vast majority of economists predict the U.S. will expand its global productivity lead, driven by dominance in AI, strong investment, and lower energy costs.

Despite a booming stock market for AI, new companies in the sector are facing steep borrowing costs, signaling significant skepticism from debt investors.

Microsoft and Nvidia are pouring a combined $15 billion into AI startup Anthropic, even as their own stocks fall, fueling a wider market downturn.

Financial leaders are sounding the alarm on a growing gap between the trillions being invested in AI infrastructure and the slow pace of revenue generation.

Meta Platforms is set to spend over $100 billion next year on artificial intelligence, a massive gamble by Mark Zuckerberg that caused a $160 billion market value drop.

Nvidia Corp. plans to invest up to $1 billion in AI startup Poolside, potentially quadrupling its valuation to $12 billion, marking a significant move in the AI sector.

A massive surge in AI stocks is driving the U.S. market, accounting for up to 80% of gains. This has prompted top leaders to warn of a potential bubble.

Stardust Solutions, an Israeli-U.S. startup, secured $60 million, the largest funding for a solar geoengineering company, to test reflective particles in the stratosphere by April 2026, raising hopes

The AI boom is facing a critical bottleneck not in semiconductors, but in America's aging and underfunded electrical grid, creating an urgent infrastructure crisis.

Cerebras, a startup, claims its new chips can power AI models 20 times faster than Nvidia's hardware, potentially challenging Nvidia's market dominance. Cerebras uses a unique Wafer Scale Engine, a si

A surge in AI investment has pushed valuations of unprofitable startups to nearly $1 trillion, sparking fears of a 'cargo cult' bubble similar to the dotcom boom.