AI Bubble Warning Signs Explained

The podcast discusses whether the current AI boom is a bubble, presenting ten signs that suggest it might be, including circular investment, power consumption, the "too big to fail" narrative, valuation drift, deal delirium, institutional anxiety, internal revenue loops, capital intensity, infrastructure drag, and monetization uncertainty. It explores the possibility that this is not just a bubble but the foundation of a new industrial layer, like railroads or electricity. The podcast also considers why the bubble might never burst due to real-world infrastructure investments, or why it still could due to bad business models and potential economic distortions such as AI inflation in specific sectors. It concludes by suggesting that this moment is a race to build the new economy, emphasizing the importance of watching energy numbers, data center delays, supply chains, cloud compute prices, and the shift from internal to external demand, as well as government language around AI infrastructure.