The David McWilliams Podcast The AI Bubble: Boom, Bust & Baked in Nimbin
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Oct 28, 2025 Dive into the whirlwind of AI spending, which has skyrocketed to nearly $400 billion this year, sparking debates about its sustainability. Explore the notion of technological bubbles as catalysts for innovation, while considering the perishable nature of GPUs and high energy demands. Delve into how private equity is reshaping investment strategies, and ponder the implications of a potential financial crash on everyday lives. With a blend of anecdotes and analyses, the importance of regulatory frameworks and the political stakes of an AI downturn are unpacked.
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AI Spending Is A Macro Growth Driver
- The current AI surge is a massive capital boom with $300–$400bn spent and driving nearly half of US growth this year.
- That concentration creates systemic fragility if the AI bubble bursts, affecting broad economic growth.
Technologists Celebrate Productive Bubbles
- Technologists actively welcome bubbles because speculative finance accelerates radical projects and breaks stagnation.
- Bubbles fund risky scale-ups that may generate lasting public benefits despite private losses.
Baked In Nimbin, WhatsApp Saved The Day
- David got stoned in Nimbin and used WhatsApp to warn mates across time zones, illustrating tech's social benefit.
- He links that legacy to how past bubbles (telecoms) left durable infrastructure like instant global messaging.
