Business Daily Is the AI boom a bubble?
8 snips
Nov 4, 2025 
Lily Jamali, a BBC technology correspondent based in San Francisco, joins John Danielson, a finance professor at the London School of Economics, and Dan Ives, managing director at Wedbush Securities. They dive into whether the current AI surge is a bubble or the onset of a new industrial revolution. Jamali highlights massive investments and warns many companies aren't yet monetizing AI. Danielson draws parallels with the dot-com bubble, while Ives maintains that heavy tech spending signals a transformative era. The debate tackles demand, investment strategies, and future profitability.
AI Snips
Chapters
Transcript
Episode notes
Top Officials Flag Stretched AI Valuations
- Warnings from top bankers and institutions signal real concern about inflated AI valuations.
- These cautions highlight that some AI investments may not produce equivalent economic value.
Huge Compute Spend May Outpace Real Demand
- Massive sums are flowing into AI infrastructure like data centres, driven by huge compute demand.
- But analysts question whether that spending translates into broad, profitable economic impact.
Veteran Warns Of Imminent Bubble Collapse
- Jerry Kaplan said we're in the middle of an enormous economic bubble and predicted a severe collapse.
- He argued circular funding and reinvestment among firms is feeding the bubble's growth.