This Week in Startups

Just how frothy is the AI Bubble anyway? | E2195

120 snips
Oct 21, 2025
The hosts dive into the potential AI bubble, discussing its size and whether it might burst. They analyze past economic crises and emphasize that finance, not tech, often drives market bubbles. OpenAI's massive spending and enterprise versus consumer AI adoption are contrasted, alongside insights on multi-cloud strategies during AWS outages. The conversation touches on AI-generated fakes and the urgent need for trust in media, while exploring whether AI can outperform traditional market strategies.
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INSIGHT

AI's Massive Multi-Year TAM

  • Jason argues AI will create a multi-trillion dollar revenue wave over years, not a fleeting fad.
  • He expects sustained $50B/year growth aggregating to roughly $1T in the short-to-mid term.
INSIGHT

Finance, Not Tech, Often Fuels Bubbles

  • Jason links past major market bubbles to financial actors and Wall Street behavior rather than core tech products.
  • He warns finance often accelerates booms and creates the froth that leads to corrections.
ADVICE

Treat Late-Stage Finance As A Red Flag

  • Watch for late-stage financial players doing speculative deals as a signal of a market top.
  • Treat rapid entry of fee-driven finance as a red flag and reassess valuation and risk exposure.
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