Even banks and hyperscalers are now sounding the alarm about the AI bubble

https://www.theregister.com/ai-and-ml/2026/07/06/even-banks-and-hyperscalers-are-now-sounding-the-alarm-about-the-ai-bubble/5266123

by andsoitis • 16 days ago

35 8 16 days ago

theregister.com

joe_the_user• 16 days ago

Even AI companies talk about the situation as a bubble. But the idea is this is akin to the railroad bubble or the Internet bubble. Basically, you the "frothy" development of a new technology in which you will certainly many losers but also a few massive winners. Moreover, "how do you monetize it" is not as much of a question as in dot com era.

Not that things are guaranteed. But the argument that a smart speculative investor should be in AI somewhere seems convincing. It's certainly "overheated" the economy but a correction based on overheating doesn't discredit things, it just shakes thing up allows the highest quality plays to double down however many months later.

favflam• 16 days ago

China is laughing because US pensioners will have paid trillions to train all these AI models whose weights can be distilled and open sourced trivially.

Giving Silicon Valley political power is going to cost the United States enormously, starting with the pensions who will be left holding the bag after the AI bubble bursts.

dcrazy2• 16 days ago

Pensions? You’re not from the U.S., are you?

IOT_Apprentice• 16 days ago

I am from the USA and 401k + IRAs are the terms here and yes they are going to be used. Your point?

gipp• 16 days ago

https://fred.stlouisfed.org/series/BOGZ1FL594090005Q

Pension funds hold $30 trillion, my guy. Even restricting to only defined -benefit funds it's 7T.

frrgg• 16 days ago

Indeed - it’ll essentially be like toilet paper when all is said and done.

I know many here are really, really upset about that prospect - suck it up!!

andsoitis• 15 days ago

US pensioners will have paid trillions to train all these AI models

What do you mean? Can you explain the flow of money from pensioners to the AI labs?

Even banks and hyperscalers are now sounding the alarm about the AI bubble

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