
AI Industry Shows Classic Signs of a Tech Bubble
Analysts note that the artificial‑intelligence sector is exhibiting the four hallmark factors of a technology bubble: deep uncertainty about profitable business models, a surge of pure‑play investments, a wave of novice retail investors, and a powerful narrative of inevitable transformation. Comparisons are drawn to historic bubbles in radio and aviation, while the dominance of Nvidia in the market and massive capital commitments from firms such as SoftBank, Microsoft and OpenAI underscore the scale of the hype. A recent MIT study found that most firms adopting generative AI have not yet profited, adding to concerns about sustainability.










