"2025 was unquestionably the year of AI. Big Tech shelled out roughly $400 billion on capex, a spending spree so extensive that some economists believe it staved off an overall recession. Nvidia became the first $4 trillion company. And AI content became inescapable, seeping into everything from Hollywood to campaign ads - even Mickey Mouse is getting into AI. It hasn't been an endless party. Seemingly every few weeks, the stock market gets spooked that music is about to stop."
"Wall Street's thought bubble In an era of nostalgia traps, traders can't decide whether this is the Dot-Com era all over again. Tech and AI CEOs can't agree either. In August, OpenAI CEO Sam Altman touched off concerns that a bubble had already formed. Since then, Bill Gates, Nvidia's Jensen Huang, Mark Cuban, and Mark Zuckerberg have offered their own similar or dissenting views. The optimists' train of thought often ends up at the railroads and other breakthrough innovations that transformed the economy."
Extensive AI investment dominated 2025, with Big Tech spending roughly $400 billion on capital expenditures that may have helped avert a broader recession. Nvidia reached a $4 trillion valuation as AI-infused content proliferated across entertainment, advertising, and media. Market volatility persisted as investors repeatedly questioned whether valuation dynamics resembled past bubbles. Tech leaders expressed divergent views on bubble risk, with some framing the surge as transformative and others warning of excess risk-taking by competitors. Persistent uncertainty around valuations and aggressive spending suggests bubble concerns are unlikely to disappear soon.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]