Lawfare Daily Ten Signs of a Growing AI Bubble
Nov 22, 2025
Is the AI boom on the brink of a bubble? Discover the intriguing signs that suggest it might be. Massive capital inflows create a tense atmosphere, while circular investments among companies can distort actual demand. Power constraints pose a serious risk to growth, highlighting infrastructure challenges. With high valuations based on optimistic forecasts and underlying systemic risks, the narrative is complex. Could this be the next transformative industrial layer, or are we facing a correction? Important metrics to monitor reveal the landscape ahead.
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Largest Capital Pileup Meets Real Constraints
- The podcast frames AI investment as the largest capital pileup in tech history with both believers and skeptics.
- NVIDIA's record revenue shows real demand but its warning of slowing growth reveals emerging physical constraints.
Three-Company Lunch-Money Loop
- The host uses a lunch-money loop to illustrate circular investment among Microsoft, Anthropic, and NVIDIA.
- This example questions whether spending reflects real external demand or artificial looped transactions.
Energy Could Be The Real Bottleneck
- AI's compute needs tie companies to regional energy infrastructure at unprecedented scale.
- Electricity, not silicon, may become the primary bottleneck for AI expansion.