Artificial intelligence is having its moment — and by “moment,” we mean the kind of global, frothy excitement usually reserved for royal weddings and new iPhones. Nvidia can’t make chips fast enough, Microsoft is sprinkling AI into every corner of its empire, and investors are stampeding toward anything that looks vaguely machine-learning-ish. Markets love a good theme, and AI is the theme.
But lately, some grown-ups in the room have started clearing their throats. The Bank of England, IMF, OECD, and even Jamie Dimon (Wall Street’s unofficial dad) have warned that AI valuations might be… slightly ambitious. As in: “dot-com bubble but with better graphics” ambitious.
Their concern? Trillions of dollars are about to be poured into AI infrastructure over the next five years — half of it funded by debt. That’s a lot of money riding on technology that, so far, is spectacular at creating cat photos, less consistent at making profits. If growth slows or winners don’t emerge fast enough, the entire AI ecosystem could wobble — and credit markets might wobble with it.
But here’s where the story gets interesting: this isn’t 1999. Today’s AI leaders actually generate money. Nvidia prints cash. Microsoft has the margins of a Bond villain. Amazon, Google, and Meta aren’t selling dreams — they’re selling infrastructure, tools, and models with real-world demand. Companies in nearly every sector are integrating AI to cut costs, speed up workflows, and boost productivity. Unlike the dot-com days, customers actually exist.
So, bubble? Maybe. Breakthrough? Also maybe. The most honest take is that AI sits at the uncomfortable crossroads where hype meets genuine economic transformation. Markets may be running a little ahead of reality — but reality is racing to catch up.
Whatever happens next, one thing’s certain: AI isn’t going away. The only question is whether investors are paying tomorrow’s price for today’s progress… or whether this really is the early chapter of the next tech revolution.