The AI Daily Brief: Artificial Intelligence News and Analysis
5 Reasons AI is a Bubble (And 5 It’s Not)
08 Oct 2025
Today’s episode digs into a question that has been with us since ChatGPT launched: is AI a boom or a bubble? The conversation has surged this week after deals between OpenAI and AMD and Nvidia and xAI, as well as reports around the thinness of Oracle's margins. NLW breaks down five arguments on each side — from circular investments and overbuilt data centers to explosive real revenues and unprecedented demand. The discussion reveals how investor psychology, corporate strategy, and market timing are shaping the next phase of the AI economy.Brought to you by:Is your enterprise ready for the future of agentic AI?Visit AGNTCY.orgVisit Outshift Internet of AgentsTry Notion AI today with Notion 3.0 https://ntn.so/nlwKPMG – Discover how AI is transforming possibility into reality. Tune into the new KPMG 'You Can with AI' podcast and unlock insights that will inform smarter decisions inside your enterprise. Listen now and start shaping your future with every episode. https://www.kpmg.us/AIpodcastsBlitzy.com - Go to https://blitzy.com/ to build enterprise software in days, not months Insightwise - AI for the entire consulting lifecycle https://www.insightwise.ai/Robots & Pencils - Cloud-native AI solutions that power results https://robotsandpencils.com/Vanta - Simplify compliance - https://vanta.com/nlwThe Agent Readiness Audit from Superintelligent - Go to https://besuper.ai/ to request your company's agent readiness score.The AI Daily Brief helps you understand the most important news and discussions in AI. Subscribe to the podcast version of The AI Daily Brief wherever you listen: https://pod.link/1680633614Interested in sponsoring the show? [email protected]
Full Episode
Today on the AI Daily Brief, five reasons AI is a bubble and five it's not. The AI Daily Brief is a daily podcast and video about the most important news and discussions in AI. All right, friends, quick announcements before we dive in. First of all, thank you to today's sponsors, Robots and Pencils, Notion, KPMG, and Super Intelligent.
To get an ad-free version of the show, go to patreon.com slash ai daily brief, or you can get it on Apple subscriptions. To learn more about sponsoring the show or anything else about the show, speaking engagements, et cetera, go to ai daily brief.ai. One of the things that I'm thinking about for next year are extensions to this core show.
Nothing is changing about this core show, but there is so much more to explore out and around it that I'm exploring three different ways to expand the AIDB universe. The first is an enterprise edition that would basically take this show, repackage it, reorganize and restructure it as learning materials and discussion and strategic material for enterprise teams.
The second is an operator's cut, which would be additional supplemental material that was a little bit more practical and focused, stuff that would help you apply AI more directly. And then the third, relevant for this particular episode, is an investor's edition, which would be a supplement more focused on big market themes. I would love to know if any of these interest you.
So if you would be so kind, please go to ai-dailybrief.ai. There's a three-question survey there, and that would be ever so appreciative if you would fill it out. Lastly today, we are talking about the big behemoth topic, is AI a bubble? And it got long and dominated the entire episode. So no headlines today. We'll be back with headlines tomorrow. And without any further ado, let's dive in.
Welcome back to the AI Daily Brief. Today, we are once again exploring a theme that has been with us since the beginning and will be with us for a long time to come, I think. However, it has just gotten too loud, too unignorable. We have to dig in again because this is all anyone, at least in the mainstream media, is talking about right now.
The question, of course, is AI bubble, and we are going to talk about this latest report from the Information and Oracle, which restarted this set of conversations, and look at a set of reasons why AI is or is not in a bubble right now.
But just for a little bit of context, and to really reinforce the point that this has been with us since the beginning, ChatGPT came out at the very end of November of 2022, and already by February 7th, people like Josh Brown of Ritz-Holtz Wealth Management were calling an AI bubble.
It was loud enough that a few months later in September, Goldman Sachs had to come out and say that it wasn't a bubble. Despite the mega-cap tech stocks rising by 60% at that stage in 2023, their analysts were convinced that there was still plenty of room to run. But then by December, we get articles like this one from Crunchbase, the AI bubble will burst, here's how to limit your exposure.
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