The AI Bubble Is Starting to Crack

AI is supposed to change everything. Investors have certainly bought into the story. Nvidia is worth trillions, OpenAI is valued at hundreds of billions, and AI companies are spending unprecedented sums on data centres, chips and infrastructure. But there is a growing problem: AI spending is rising much faster than AI profits. In this video, I look at the parallels between today's AI boom and the dot-com bubble, the challenges of turning AI into a profitable business, the rising costs of AI infrastructure, and whether current valuations can be justified by future growth. Is AI genuinely transforming the economy, or are investors getting carried away by expectations that may prove difficult to achieve? 00:00 Current State 2:06 Hidden Costs 4:34 AI is not that Good 6:04 Lack of Profit ► Please SUBSCRIBE! https://www.youtube.com/c/economicshe... ABOUT ----------- ► https://www.economicshelp.org was founded in 2006 by Tejvan Pettinger, who studied PPE at Oxford University and teaches economics. He has published several economics books, including: ► Economic Short Cuts https://amzn.to/3IgxupC ► 50 Essential Economic Ideas https://amzn.to/3IgxndG ► Cracking Economics. https://www.economicshelp.org/shop/cr... ► What Would Keynes Do? Amazon https://amzn.to/2xShqq4 ► Economics Without the Boring Bits https://amzn.to/48T1hA9 #AI #Economics #TechStocks #Bubble #Investing #Economy #Technology #finance