At this point, saying AI is a bubble feels like the finance version of claiming The Office is overrated, predictable, a little smug, and kind of missing the point.
This week, the IMF and the Bank of England joined the chorus of nervous institutions warning that if the AI hype fizzles, the global economy could take a hit. Even Jamie Dimon from JPMorgan said he’s a believer in the tech, but expects a lot of investors to get burned. Basically, the hype is real… but so is the risk.
But not everyone on Wall Street is buying the doom narrative.
Goldman Sachs admits a handful of AI-heavy tech giants are eating up a massive slice of the market’s value, and that isn’t sustainable forever, but they’re also making real money. And here’s the kicker: they’re mostly spending their own cash, not borrowing to chase the dream.
Morgan Stanley added that today’s market is far more cash-rich than it was before the dot-com crash. And Bank of America said those closed-loop funding moves, like OpenAI getting $100B from Nvidia just to turn around and buy Nvidia chips, aren’t that common.
Being revolutionary doesn’t protect you from reality. Bain & Co. estimates AI would need to bring in $2 trillion in annual revenue by 2030 just to make sense of the money pouring in. That’s a steep hill.
And unlike past overbuilt tech (think railroads or fiber cables), AI’s backbone, those wildly expensive chips, age fast. You can’t just build it once and coast.
So sure, it might not be a classic bubble. But it’s definitely a high-wire act. And not everyone has a safety net.
If you’re navigating this space or considering where AI could actually add value for your business, there are practical ways to start without burning your entire budget. I offer tailored, accessible consulting to help you get clarity, whether you’re exploring AI tools, workflow automation, or just trying to make smarter decisions in this space.