The Digital Press

The article argues that the current AI industry is a vast economic bubble driven by unprofitable companies burning through massive investments without sustainable returns, risking a severe financial crash with widespread economic consequences.

Why it matters: AI firms rely on continuous investor money despite poor unit economics, risking a crash that could harm millions of workers and the economy.

The big picture: This AI bubble dwarfs past tech bubbles and is fueled by hype around AI replacing jobs, which the author believes is unrealistic and harmful.

The stakes: If the bubble bursts, many AI-dependent jobs will vanish without replacement, leaving a large social and economic debt for future generations.

Commenters say: Readers debate the timing and inevitability of a crash, question the evidence for the bubble, and discuss AI’s real-world productivity and profitability claims.