The Fin The AI bubble comes to Australia: what happens if it goes pop?
20 snips
Dec 3, 2025 James Thomson, a Chanticleer columnist known for his insights on investment trends, joins Paul Smith, the Technology editor at the Australian Financial Review, to discuss the booming AI investment landscape in Australia. They explore the sustainability of current AI valuations and whether we're witnessing a new economic bubble. The duo analyzes the significance of Nvidia's performance, the monetization challenges faced by AI companies, and how Australia could become a leading data center hub. They caution about the potential economic fallout if this AI bubble were to burst.
AI Snips
Chapters
Transcript
Episode notes
Huge Promise, Weak Monetisation
- The AI boom mixes enormous promise with limited current monetisation, creating a valuation gap.
- James Thomson warns the "show me the money" moment is still outstanding for many AI businesses.
NVIDIA Is The Linchpin
- NVIDIA sits at the centre of the AI investment boom as the dominant chip supplier powering models.
- Paul Smith explains the boom is circular: chip makers fund buyers who then buy more chips, inflating demand.
Concentration Raises Market Risk
- Massive revenue growth at NVIDIA depends on a handful of buyers sustaining huge infrastructure spending.
- James Thomson warns heavy concentration and borrowed funding add systemic risk to markets.