With its promise to displace jobs and disrupt daily life, AI and large language models have formed a unique market and social bubble: one that nearly everyone hates. Despite little revenue, billions of dollars are promised by hyperscalers like Google and Meta to help build out AI data centers in increasingly arcane financing schemes that are propping up the otherwise meager economy.
Today on the show Matt and David invite two guests: Advait Arun, Senior Associate for Capital Markets at the Center for Public Enterprise and author of a recent paper on data centers, Bubble or Nothing; and Sarah Meyers-West, who is the co-executive director of the AI NOW Institute, to discuss the strange place we've found ourselves in. We discuss the state of the AI economy, the complex ways these data centers are financed (including old favorites like credit default swaps), how the bubble might pop, and what the consequences might be.
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