But as contrarians note, surely this argument is incomplete. After all, the companies leading the current AI investment cycle — Nvidia Corp, Amazon.com and Google, among others — did not build their digital empires by throwing money at mirages.
Is artificial intelligence (AI) in a bubble right now? It’s the question of the moment.
Bubble theorists point towards a mix of alarming signs: dramatic market gains (Nvidia briefly breaching a US$5 trillion market cap in October); elevated valuations (see Chart 1); trillions of dollars, past and projected, poured into AI infrastructure even as tangible returns remain scarce. The list goes on.
