Inside The AI Bubble: Debt, Depreciation, and Losses — With Gil Luria

In this episode of Big Technology Podcast, Alex interviews Gil Luria, head of technology research at DA Davidson, about the potential AI bubble. They discuss the healthy and unhealthy behaviors in the AI investment landscape, with Luria pointing out companies like Palantir as examples of healthy growth and CoreWeave as an example of unhealthy debt-fueled expansion. The conversation covers the risks associated with debt financing for speculative AI ventures, using Oracle as a case study, and the potential for systemic risk if debt levels become too high. They analyze Michael Burry's critique of AI companies overstating earnings through depreciation and debate whether current GPU technology will hold its value over the long term. They also explore the potential for a "prisoner's dilemma" in AI inference pricing, where companies prioritize market share over profitability, and the power bottleneck that could limit AI's growth.