AI Bubble
Working knowledgeAI Economics and Infrastructure
The AI bubble is the concern that AI-related investment, valuations and infrastructure spending have grown faster than the revenue and profits actually being generated, echoing the dot-com bubble of the early 2000s. Whether or how sharply it corrects is one of the most closely watched questions in markets and technology right now.
In practice
Global AI spending is projected to exceed $2 trillion in 2026, so the bubble question is whether revenue eventually catches up, or the correction arrives first. For a mid-market buyer the exposure is supplier solvency and pricing: an AI vendor priced on growth funding today can reprice or disappear in a downturn. Weigh the switching cost before building a core process on one.