This is Money Podcast Why investors are worried about a giant AI bubble - and what happens if it bursts
Oct 10, 2025
The podcast dives into the growing concerns over a potential AI bubble, drawing parallels with the infamous dot-com boom. Experts discuss the red flags surrounding high-profile AI deals and the implications for investors. Additionally, they explore gold's recent rally as a safe-haven indicator amid market fears. Listeners learn about the car finance compensation scandal and whether scrapping stamp duty could enhance housing mobility. Finally, the hosts reveal how some households benefited from negative energy prices during recent events.
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Episode notes
Useful Tech Can Still Cause Bubbles
- AI is a useful technology that can stick around but can also create a speculative bubble separate from its utility.
- Useful technologies (internet, railways) still caused boom-bust cycles when investment became speculative.
Vendor Financing Creates Interconnected Risk
- A web of vendor financing deals around OpenAI concentrates risk across chipmakers and investors.
- These interdependent deals amplify market exposure if AI expectations falter.
Data Centres Could Be Stranded Infrastructure
- Massive AI data centres demand extraordinary power and cost, creating an infrastructure boom with uncertain end demand.
- If businesses don't adopt generative AI widely, the data-centre build-out risks becoming stranded capital.