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Is the AI Bubble About to Go Bust or Break Records?
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Subscribe11 DEC 2025 / TECHNOLOGY
Investors are becoming worried about the possibility of an AI bubble akin to the dot-com bubble; however, unlike the dot-com era, today's AI buildouts are backed by real usage, cash flow, and customers. Furthermore, advancements like 'agentic AI' - models capable of reasoning through problems rather than just outputting data, are helping companies maximize capabilities and keep momentum. The article suggests the most significant bubble risk is in software, with traditional SaaS models now under pressure to deliver results rather than just provide access. A downturn would likely lead to layoffs and budget cuts within the industry, but also provide an opportunity for companies with real business models to emerge stronger.
If the past year felt like a joyride on a tech rocket ship, the mood today is closer to white-knuckle turbulence. Wall Street went from “AI to the moon” to “hold up, are we heading for another dot-com face-plant?” almost overnight. The buzz has flipped in...
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