We are living in an AI boom — or perhaps an AI bubble.
As tech giants pour hundreds of billions of dollars into artificial intelligence, some analysts warn the market is overheated, echoing concerns of the late 1990s dot-com bubble. While AI is fueling a disproportionate share of U.S. GDP growth, critics caution that the massive spending spree could leave investors vulnerable if returns don’t materialize.
Billions Flow into AI Startups
According to CB Insights, more than 50% of venture capital dollars went to AI startups in the first half of 2025, surpassing all of last year’s totals. That surge in funding has fueled Wall Street jitters, with major tech stocks sliding last week amid fears of an AI bubble. Nvidia’s upcoming earnings report is now viewed as a bellwether for the sector.
Sam Altman’s Stark Warning
OpenAI CEO Sam Altman added fuel to the debate earlier this month. “Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes,” he said. At the same time, he acknowledged AI’s transformative potential: “Is AI the most important thing to happen in a very long time? My opinion is also yes.”
