Is the generative AI bubble about to burst?

If that is true, then we can expect a continuation of the incremental gains we are seeing now, even after throwing trillions worth of data center infrastructure at AI. Some unpredictable breakthroughs may occur, but they’ll be more in the realm of potential than predictable, based on the existing facts on the ground.

What if AI is a bubble?

Artificial intelligence is a legitimately exciting new sphere of technology, and it is producing a massive build-out. But if the hype extends too far beyond what reality can support, it will contract in the other direction. The organizations and ideas that survive that round of culling will be the ones capable of supporting enduring growth.

This happened with Blockchain. It went big, and some of those riding its expansion exploded spectacularly. Consider FTX, which lost some $8 billion in customer funds, or the Terra collapse, which is tough to fully quantify but included at least $35 billion lost in a single day. And these are just two examples among many.