The Digital Press

Noah Millman argues that the current surge in AI investment resembles a bubble driven by slowing technological advances and increasing financial maneuvering rather than genuine breakthroughs. While AI promises economic benefits, significant constraints and financial risks could lead to a sharp market correction.

Why it matters: The AI bubble risks a major market crash that could disrupt economies and slow AI progress despite its potential benefits.

The big picture: Technological limits like power consumption, chip production, and training data scarcity are slowing AI’s rapid growth phase.

The stakes: Financial entanglements in AI infrastructure could trigger systemic risks similar to past crises if asset correlations are underestimated.

Commenters say: Many agree an AI bubble exists, debating its size, timing of a possible crash, and the lasting value of AI beyond the hype.