Is the AI bubble going to burst?
Some of the smartest people in tech, the ones who made billions riding the AI wave, are quietly exiting.
Peter Thiel sold his Nvidia stake. SoftBank’s CEO walked away completely. Michael Burry bet $1B against Nvidia before shutting down his fund.
When the early winners start leaving the casino…you should pay attention.
Here’s my take:
AI isn’t the bubble. The valuations around AI are.
OpenAI is valued at $500B with < $5B revenue.
Some AI startups are hitting $50B valuations with no product, no customers, no revenue.
Big tech companies are using accounting tricks to hide how expensive AI really is.
AI hardware becomes outdated in 2–3 years. But companies record it as lasting 5–6.
That makes profits look healthier than they actually are.
Even Sundar Pichai said it straight:
“If the bubble bursts, no company is immune, including us.”
But here’s the part everyone forgets:
The internet bubble also burst.
And the survivors became trillion-dollar giants.
AI will follow the same path:
Hype → Crash → Real Transformation.
My advice to leaders:
– Don’t build AI products that threaten human creativity.
– Don’t trust inflated metrics.
– Don’t mistake momentum for sustainability.
Focus on AI that solves real problems, improves real workflows, and delivers real ROI.
The bubble will burst.
Smart strategy won’t.
