The AI Bubble: More Subprime Than Dot Com
Veteran Wall Street reporter Herb Greenberg joins to discuss the AI bubble and the history of hyper-inflated markets.
Welcome to the podcast Organized Money. You can listen to today’s episode on Apple on Spotify, or wherever you get your podcasts.
Investment in AI infrastructure has exploded over the last few years, with big players like Google, Meta, OpenAI, Nvidia, and Oracle, striking deals involving hundreds of billions of dollars to build out AI data centers. These deals are single-handedly buoying the otherwise-flailing US economy, but where are these billions actually coming from? And why do all these deals seem to involve the same players in increasingly circular arrangements? Even the most optimistic observers are starting to state the obvious: we’re in an AI bubble.
Image Created using Claude.ai “Create a jpg depicting the AI Sector Bubble“
Today on the show, Matt and David talk to Herb Greenberg of Herb Greenberg’s Red Flag Alerts to discuss the hubris of the current moment, how this moment is both alike and different from past bubbles, and how this thing might pop.
Listen via Apple or Spotify, or wherever you get your podcasts.
Another thing we’re doing this year is providing transcripts and video for every episode. Check your inbox for that soon.
Thank you so much for listening. If there’s a monopoly you’d like us to explore this year, or if you have anything else to tell us, please let us know by leaving a comment or by responding directly to this email.
Maybe a bubble but the effect of AI on tech productivity is real and exploding right now with things like Claude.
IT historical bottleneck is proper senior developers who comprise less than 1% of the lot and whose time is hugely wasted.
Now we have these new assistants which learn and follow instructions better than millions of contractors we have been forced to carry for years...
Things may change abruptly.