"The global economy has become dependent on the AI industry, with trillions of dollars being invested into the technology and the infrastructure it relies on. In the final months of 2025, functionally all economic growth in the United States came from AI investments."
"Much of the AI supply chain relies on key materials produced in or transported through just a few places on Earth, particularly the Middle East, which has been destabilized by the war in Iran."
"Wall Street analysts and tech-industry observers have fretted publicly about an AI bubble, fearing that too much money is coming in too fast and that generative-AI companies still have not offered anything close to a viable business model."
"Until recently, that kind of crash felt hypothetical; today, it feels plausible and, to some, almost inevitable."
The AI industry has become crucial to the global economy, with trillions invested in technology and infrastructure. By late 2025, nearly all U.S. economic growth stemmed from AI investments. However, the supply chain is vulnerable, relying on materials from unstable regions like the Middle East. The ongoing war in Iran threatens to disrupt AI development, risking a financial crisis. Concerns about an AI bubble have emerged, as rapid investment may outpace viable business models, leading to a potential market crash affecting banks and investors.
Read at The Atlantic
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