WSJ's Take On the Week Will AI Spending Pay Off? Or Are We in a Bubble?
Oct 2, 2025
Dan Gallagher, Heard on the Street tech columnist at The Wall Street Journal, explores the staggering investments in AI by Big Tech. He discusses the risks of obsolescence for these companies and analyzes whether the current spending indicates a bubble. Gallagher underscores the importance of enterprise adoption for funding AI services and highlights Nvidia's pivotal role in market growth. The conversation also navigates through the uncertainties of monetization and the potential downsides of AI, like low-value work, drawing clever parallels to past investment mistakes.
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Episode notes
Investment Hopium Versus Proof
- Massive capital is chasing AI based largely on the assumption it will transform work and products.
- The panel warns we may only know if it's a bubble after the investments fail to pay off.
Spending To Avoid Obsolescence
- Big tech firms are spending because missing AI could make them obsolete, not just from greed.
- Historical tech shifts (like mobile) show incumbents can fall if they ignore new trends.
Focus On Enterprise Monetization
- Expect enterprise customers to drive much of AI monetization through internal tools and subscriptions.
- Watch how companies convert free users into paying corporate customers for revenue growth.