The Decibel If AI is a bubble, how will it pop?
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Nov 26, 2025 Joe Castaldo, a Globe and Mail business reporter specializing in artificial intelligence and the tech sector, dives into the swirling debate over whether AI is a financial bubble. He discusses the immense investments tech giants are making and the market's dependence on AI growth. Castaldo explores the profitability of AI companies, drawing parallels to the dot-com bubble, and reveals potential signs of an impending pop, like falling stock prices and poor returns. The conversation underscores the precarious balance between innovation and market reality.
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AI Shows Classic Bubble Signals
- Massive hype, huge spending, and unclear returns create classic bubble conditions in AI right now.
- Joe Castaldo warns that expensive data-centre buildouts and novel finance deals amplify those risks.
AI's Large Economic Footprint
- AI's economic footprint is substantial across markets and GDP growth in the U.S.
- Castaldo cites studies showing AI-related stocks and data-centre construction meaningfully move the economy.
Investment Scale Rivaling Historic Projects
- Global AI investment this year is roughly $590 billion, rivaling historic national projects.
- Forecasts estimate trillions more needed for data centres and energy infrastructure.