The Fourcast AI boom or bubble? why economists fear a global meltdown
Oct 16, 2025
In this enlightening discussion, entrepreneur and futurist Jerry Kaplan, renowned for his insights on Silicon Valley, warns of a looming AI bubble reminiscent of past market crashes. He discusses the risks of overhyping AI technology and the potential consequences for investors. Economics correspondent Helia Ebrahimi, reporting from the IMF/World Bank meetings, explores valuation comparisons with the dot-com era, addressing macro risks. Together, they highlight the challenges of distinguishing AI's genuine potential from inflated expectations.
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AI Bubble Is Real And Large
- Jerry Kaplan says we are in a significant AI bubble that will burst and cause negative effects.
- He warns the bubble is larger than the dot-com boom and risks wide collateral damage.
Valuations Are Massive But Not Banking Risk
- Helia Ebrahimi explains valuations are massive, citing Nvidia bigger than the UK economy.
- The IMF sees dot‑com similarities but not systemic banking risk because this is not lending‑based.
Fiber Companies Burned While Infrastructure Stayed
- Jerry Kaplan recalls the dot‑com era where many firms like fiber companies burned investor capital.
- He notes infrastructure remained useful even after investors lost everything.