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In Search of the AI Bubble’s Economic Fundamentals
The rise of generative AI has triggered a global race to build semiconductor plants and data centers to feed the vast energy demands of large language models. But as investment surges and valuations soar, a growing body of evidence suggests that financial speculation is outpacing productivity gains.
https://prosyn.org/jdf3oHO
CAMBRIDGE – In recent weeks, the notion that we are witnessing an “AI Bubble” has moved from the fringes of public debate to the mainstream. As Financial Times commentator Katie Martin aptly put it, “Bubble-talk is breaking out everywhere.”