Today in Focus Is AI a bubble that’s about to pop?
69 snips
Dec 8, 2025 
Blake Montgomery, Tech Editor for The Guardian US, dives deep into the intricacies of the AI landscape. He discusses the significant economic footprint of AI and the 'Magnificent Seven' stocks dominating the market. Concerns emerge over massive investments and whether companies like OpenAI can achieve profitability. Blake highlights the systemic risks posed by circular investments and compares the potential fallout of an AI crash to past market bubbles. He ultimately suggests the risks are real, but a total bust may not be imminent.
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Tulip Mania As A Cautionary Tale
- In 1637 tulip bulb prices collapsed after auctions failed and bids dried up.
- The host uses the tulip mania story to illustrate how speculative greed can trigger sudden market crashes.
Tech Giants Concentrate Market Risk
- Seven giant tech firms now make up about one third of the S&P 500, concentrating huge economic power.
- That concentration means trouble at one firm can send shockwaves through the whole US economy.
Infrastructure Spending Fuels The Hype
- Massive spending on AI infrastructure recently outpaced typical drivers like consumer spending.
- This outsized investment fuels fears that current growth is driven more by infrastructure build-out than by proven revenue streams.