I'm Not Convinced the AI Bubble Exists

The AI bubble is a speculative concept that the AI industry is extremely over-valued. If true, the value of most companies involved in AI (several of whom are worth well over a trillion dollars) will collapse, devastating the entire economy. If you check any online discussion about the financial situation of the AI industry, it's essentially taken for granted that the bubble exists and is going to pop any day now. I don't think that this is a reasonable assumption, though. Nobody can see the future, but I think that there's a pretty realistic chance that the meteoritic growth of AI companies in the past few years is justified, and that they have even more room for growth. To say that AI companies are spending an absurd amount of money is an understatement. The debt and spending commitments for AI companies are handled through complex vehicles that make it difficult to tell exactly how much their expenses actually are (a serious problem, and one of the most salient points in favour of AI being a bubble), but they've committed to spending at least 3 trillion dollars so far . It's also been estimated that AI companies have already spent 1.9 trillion , bringing the overall expense of the AI industry to around 5 trillion dollars. This is unprecedented levels of investment, and AI just can't be profitable if this level of spending is maintained. However, there's no reason for why this level of spending has to be maintained in the first place. The reason why AI companies are spending so much money is to rollout data centres to run the AI in the first place.