Are we in an AI bubble? (these are the 5 warning signs)

The podcast explores whether the current surge in artificial intelligence investment constitutes a financial bubble, drawing parallels to historical economic bubbles like the tulip mania, railway boom, and dot-com era. The speaker introduces a five-gauge framework to assess the risk of an AI bubble, evaluating factors such as investment intensity, monetization level, revenue trajectory, valuation levels, and the quality of capital. While most gauges currently indicate a boom phase rather than a bubble, with strong revenue growth and solid funding from major tech companies, some areas, like investment intensity and monetization, are showing amber signals, suggesting potential risks. The analysis suggests that even if a financial bubble bursts, the underlying AI technology and infrastructure will remain valuable and continue to evolve.