By Alan Kohler
Publication Date: 2025-11-23 18:00:00
There is a lot of fearful talk in the stock market about whether we are in the middle of an AI bubble.
Of course we do – it seems impossible that the profits from AI will be enough to provide a reasonable return on the huge sums invested in it.
But no one knows when the bubble will burst, and investors don’t want to miss out on every last bit of froth, so they hold on and hope to find the right time to exit, which is impossible.
In a sense, asset price bubbles have a purpose: They provide the money for a new technological push and provide a group of optimists with the opportunity to sacrifice their wealth for the good of the rest of us.
Load…
The remains of burst blisters
The dot-com bubble of the ’90s left us with the Internet after its collapse, the railroad bubble of the late 19th century left us with railroads in America, the Tokyo real estate bubble of the 1980s left Japan with some great buildings, and the Tulip Mania of 1637 left us with… well, beautiful flowers.
The AI bubble we are in now will leave us with AI,…
