Scott Carney Investigates Unveiling the AI Hype Cycle's Inevitable Collapse
Jan 13, 2026
The discussion dives into the staggering investments in AI, likening it to a speculative bubble. A major focus is the role of NVIDIA and its skyrocketing valuation amid the AI gold rush. The concept of circular investing inflating stock values raises eyebrows. Both the promises of superintelligence and job replacement hype face scrutiny, revealing real-world limitations. Lastly, intriguing predictions about the potential collapse by 2027 challenge the utopian visions, leaving listeners questioning the sustainability of the current AI boom.
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Economy Wagered On AGI Belief
- Investors are betting the entire economy on an unproven belief that AGI is inevitable.
- That belief has driven almost a trillion dollars into AI infrastructure and stock market gains concentrated in a few firms.
Self‑Improving AI Equals Exponential Value
- The AGI promise claims machines will self-improve and produce exponential innovations.
- That outcome would make owners of AI infrastructure extraordinarily wealthy even before AGI exists.
Circular Investing Inflates Chip Valuations
- NVIDIA's valuation is driven more by hype and circular investment than end-user demand.
- Money flows between NVIDIA and funded data‑center companies, inflating reported revenues and chip sales.