The Digital Press

The AI industry is in an unsustainable economic bubble fueled by unprofitable companies burning through massive investments, risking a looming crash that could devastate the economy and labor market.

Why it matters: AI firms rely on inflated investor hype and cannot turn profits, threatening widespread economic fallout when the bubble bursts.

The big picture: This bubble dwarfs historic tech bubbles, with AI infrastructure costing more over time and generating less revenue, unlike past tech successes.

The stakes: Collapse may cause massive job losses with no safety net, as AI replaces workers with unreliable systems and leaves many unemployed.

Commenters say: Many express concern about the bubble's scale and economic damage, while some debate AI’s actual productivity versus hype and urge preparation for fallout.