Is the AI bubble popping & the economy about to crash?
11 min
AI and chip stocks have lost about five trillion dollars since the sixth of October, and it started with one OpenAI revenue figure that came in twenty billion dollars lower than people expected. Alphabet is borrowing to build data centres, Intel just had its worst day since 1974, and everyone’s asking whether the AI bubble is about to burst. I think people clearly want AI, and the real risk is whether the money being offered out lasts long enough for most companies to generate enough money to make everyone feel safe. In this episode of In The Loop, I’m explaining how the AI industry fits together, from the chips at the bottom to the tools your team pays for, and why a shock near the top travels all the way down. ⏭️ Episode highlights (01:30) – Why OpenAI’s $50bn figure spooked everyone(02:45) – Hock Tan and Jensen Huang disagree(04:45) – What AI chips do, in plain English(08:10) – Nvidia’s money going round in a circle(09:15) – Anthropic’s first profit, then a loss(12:55) – Why the top 1% spend 80%(15:00) – Global Crossing and the fibre bust(16:45) – Which part of the tower pops