John,
Is the AI bubble about to pop?
AI is worrisome enough already, thanks to its insatiable need for energy, its capacities to take human jobs, or its potential to even destroy the planet.
But my immediate worry is how the flood of money into the AI industry has inflated the U.S. stock market and economy. What happens if the bubble bursts?
We’ve seen the housing bubble, the dot-com bubble, the stock market bubble. These bubbles followed a well-worn pattern: An asset generates excitement among investors because its value starts rising, mainly because other investors are buying it — but when it becomes obvious way too much has been invested relative to the potential for profits, the bubble bursts.
The biggest investors, with inside information, see the bubble and cash out before it bursts. Everyone else is left with near worthless pieces of paper. If the entire economy is threatened, governments bail out the remaining players to avoid even more widespread destruction.
If this AI bubble is about to pop, what happens when it does? Watch our newest video to find out.
I don’t mean to alarm you. But I do hope you will help get the word out: We can let Big Tech innovate, but we can’t let it dictate the future — or put our entire economy in jeopardy.
And we simply must not bail it out if, or when, the big AI bubble bursts.
Robert Reich
Inequality Media
