tech
January 15, 2026
AI boom fuels fears of an industry bubble (RT VIDEO)
Massive investment in AI is raising concerns of a bubble as the industry is failing to generate profits, an RT investigation finds
TL;DR
- Concerns exist about a potential financial bubble in the AI industry due to circular financing deals.
- Companies are engaging in agreements that boost market value without corresponding profits.
- Deals between entities like OpenAI, Nvidia, AMD, and Oracle are cited as examples of circular financing.
- These practices are compared to the dot-com era's inflated balance sheets.
- Nvidia's market cap surged significantly, exceeding Germany's annual economic output at one point.
- AI executives largely reject comparisons to the dot-com bubble.
- The AI industry requires hundreds of billions in investment by 2030, with many companies currently losing money.
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