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Podcast: Plain English with Derek Thompson
Episode: This Is How the AI Bubble Could Burst
Description: This year, American tech companies will spend $300 billion to $400 billion on artificial intelligence, which is in nominal dollars more than any group of companies have ever spent to do anything. Notably, these companies are not remotely close to earning $400 billion on artificial intelligence.
That's why you’re starting to hear some people wonder if the AI build-out is turning into the mother of all economic bubbles.
The prospect of an AI bubble should scare us. Roughly half of last quarter's GDP growth came from infrastructure spending on AI, and more than half of stock market ap...