The AI Bubble Everyone Wants To Pop

In this week's episode we take another look at the AI boom and contemplate how long big tech can get its bubble for nothing and clicks for free.

Welcome to the podcast Organized Money. You can listen to today’s episode on Apple on Spotify, or wherever you get your podcasts.

I Want My LLM…

With its promise to displace jobs and disrupt daily life, AI and large language models have formed a unique market and social bubble: one that nearly everyone hates. Despite little revenue, billions of dollars are promised by hyperscalers like Google and Meta to help build out AI data centers in increasingly arcane financing schemes that are singularly propping up the otherwise meager economy.

Today on the show Matt and David host two guests: Advait Arun, Senior Associate for Capital Markets at the Center for Public Enterprise and author of a recent paper on data centers, Bubble or Nothing; and Sarah Meyers West, who is the co-executive director of the AI NOW Institute, to discuss the strange place we’ve found ourselves. We discuss the state of the AI economy, the complex ways these data centers are financed (including old favorites like the return of credit default swaps), how the bubble could pop, and what the consequences might be.

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