Uncanny Valley | WIRED BIG INTV: Joe Weisenthal Has Predictions About How the AI Bubble Will Burst
Nov 18, 2025
Joe Weisenthal, co-host of Bloomberg's Odd Lots podcast, dives into the AI bubble's potential impact on the U.S. economy. He reveals how AI hype distracts from underlying economic struggles and discusses the supply chain challenges posed by soaring data center demands. Weisenthal analyzes the psychology behind investor behavior and warns of structural strains that could arise from an AI bubble burst. Despite the gloom, he offers a glimmer of hope through the U.S.'s material wealth and educational strengths.
AI Snips
Chapters
Books
Transcript
Episode notes
AI Buildout Crowds Out Physical Capital
- The AI buildout crowds out physical capital, causing shortages for other projects like drive-thru shops.
- Data centers bid up electrical and cooling gear, diverting supply and raising prices for everyone else.
Sellers Choose Price Over Capacity Expansion
- Firms prefer raising prices to investing in new capacity during uncertain booms.
- Sellers keep supply tight and enjoy high margins instead of risking large factory investments.
Tariffs Raise Business Costs Not Domestic Production
- Tariffs haven't spurred huge domestic reshoring but raised the cost of doing business.
- Companies shift suppliers and incur switching, compliance, and relationship costs that slow trade.
