By Alex Dryden
Publication Date: 2025-11-23 21:56:00
The global investment spree around AI has resulted in companies being valued at trillions of dollars and stunning predictions about how it will boost economic productivity.
But in recent weeks the mood has begun to change. Investors and CEOs are now openly questioning whether the enormous costs of building and operating AI systems can really be justified by future revenue.
Google CEO Sundar Pichai has spoken of “irrationality” in the growth of AI, while others have said some projects are proving more complex and expensive than expected.
Meanwhile, global stock markets have fallen, with technology stocks particularly hit, and the value of cryptocurrencies has fallen as investors appear increasingly nervous.
So how should we assess the health of the AI sector?
Well, technology bubbles are nothing new. The dot-com world has seen big booms and big falls, as well as a rise in the popularity of certain technology platforms (e.g. during the COVID-19 crisis) but then leveling off.
Every…
