FT Tech Tonic Tech in 2026: Inside the AI bubble
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Jan 14, 2026 
George Hammond, a venture capital correspondent at the Financial Times, reveals the origins of the AI bubble and potential market corrections. Melissa Heikkilä, the AI correspondent, discusses the nuances between language models and broader AI, while Sarah O'Connor, an insightful columnist, highlights the implications for labor markets. They delve into the inherent errors of LLMs, the challenges for startups, and the mixed predictions for AI's role in 2026. Will AI transform tasks or displace jobs? The conversation raises pressing questions about the future of work in an AI-driven world.
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Valuers Accept Bubbles As Fuel For Innovation
- VCs openly accept a bubble mentality because froth attracts capital and talent.
- They back many losers expecting one breakout winner to justify overall losses.
Watch Funding And IPO Timelines Closely
- Monitor funding needs and the timing of public listings for large AI labs before assuming stability.
- Prepare for scrutiny on finances and ethical risks when private labs seek IPOs.
Early Labour Effects Are Narrow, Not Massive
- Labor market data so far shows limited broad AI-driven unemployment despite company claims.
- Displacement appears concentrated in tasks like coding, not mass job losses yet.