I'm no expert, but bubbles seem to be forming and popping all the time. Is AI stuff bubbly? Yeah, mostly in that valuations and debt credibility are circularly derived, as assets in the chain (GPUs/data center builds) are inevitably self-referentially priced, and it all hinges on future cash flows of frontier AI companies that may not materialize.
There are lots of bubble pop bandaids though: FAANG has been sitting on huge piles of cash and governments are feverishly intertwining themselves like in the banking sector. If cash keeps coming in, it won't pop, and cash will keep coming in so long as LLM intelligence doesn't hit a hard asymptote.
I'm no expert, but bubbles seem to be forming and popping all the time. Is AI stuff bubbly? Yeah, mostly in that valuations and debt credibility are circularly derived, as assets in the chain (GPUs/data center builds) are inevitably self-referentially priced, and it all hinges on future cash flows of frontier AI companies that may not materialize.
There are lots of bubble pop bandaids though: FAANG has been sitting on huge piles of cash and governments are feverishly intertwining themselves like in the banking sector. If cash keeps coming in, it won't pop, and cash will keep coming in so long as LLM intelligence doesn't hit a hard asymptote.