The Artificial Human AI's Bubble Trouble?: 1. Is the AI bubble about to burst?
12 snips
Jan 28, 2026 
Brent Goldfarb, entrepreneurship professor and co-author of Bubbles and Crashes, and Melissa Heikela, Financial Times AI correspondent, discuss AI's sky-high valuations and whether a correction is coming. They compare today to the dotcom era, explain why hype and AGI belief keep funding flowing, and examine monetisation pressures, circular investment dynamics, and where AI may actually deliver value.
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Concentrated Market Mania
- Massive sums are flowing into AI, concentrating value into a few firms and inflating market valuations.
- The 'magnificent seven' now exceed the EU GDP, showing extreme concentration and market risk.
ChatGPT Sparked A Frenzy
- Melissa Heikela described how ChatGPT's public launch in late 2022 triggered a sudden frenzy despite labs already having similar tech.
- She compared today's startup valuations to dot-com-era vibes, with companies valued on 'vibes' rather than products.
Revenue Lags Investment
- Many leading AI companies are loss-making and lack clear monetisation paths despite massive infrastructure spending.
- This gap creates intense pressure to find profitable business models fast.
