Are we on the way to an AI bubble?

Over the last three years, I have watched the technology industry undergo one of its most dramatic changes. The emergence of generative AI has sparked a euphoria reminiscent of previous technology revolutions – some have delivered on their promises, others have not. As someone who has followed technology trends for decades, I wonder: Are we experiencing the next wave of transformation or are we inflating another bubble?

The question is not an easy one and the answer requires looking beyond the hype.

The cause for concern

Let’s start with the warning signs. The numbers alone are frightening. Major technology companies are collectively investing hundreds of billions of dollars in AI infrastructure, from data centers to specialty chips. Nvidia’s valuation has skyrocketed to unprecedented heights, driven almost entirely by AI demand. Countless start-ups have now developed into “AI companies” and have often added the name…