{"id":196947,"date":"2026-03-18T06:01:00","date_gmt":"2026-03-18T10:01:00","guid":{"rendered":"https:\/\/testing.news-you-need.com\/index.php\/2026\/03\/18\/yes-ai-is-a-bubble-there-is-no-question\/"},"modified":"2026-03-18T06:05:10","modified_gmt":"2026-03-18T10:05:10","slug":"yes-ai-is-a-bubble-there-is-no-question","status":"publish","type":"post","link":"https:\/\/testing.news-you-need.com\/index.php\/2026\/03\/18\/yes-ai-is-a-bubble-there-is-no-question\/","title":{"rendered":"\u2018Yes, AI Is a Bubble. There Is No Question.\u2019"},"content":{"rendered":"<p><a href=\"https:\/\/www.derekthompson.org\/p\/yes-ai-is-a-bubble-there-is-no-question\">\u2018Yes, AI Is a Bubble. There Is No Question.\u2019<\/a><\/p>\n<p><a href=\"https:\/\/www.derekthompson.org\/p\/yes-ai-is-a-bubble-there-is-no-question\">https:\/\/www.derekthompson.org\/p\/yes-ai-is-a-bubble-there-is-no-question<\/a><\/p>\n<p>Publish Date: <a href=\"publish_date]\">2026-03-18 06:01:00<\/a><\/p>\n<p>Source Domain: <a href=\"www.derekthompson.org\">www.derekthompson.org<\/a><\/p>\n<p>Here\u2019s a summary of the article using an unordered list containing 6 key points:<\/p>\n<ul>\n<li>\n<p><strong>AI Spending and Predictions<\/strong>: It&#8217;s projected that private sector spending on AI in 2026 will exceed $700 billion, surpassing the combined peak spending on historical major projects like the 1930s public works, Manhattan Project, 1940s electricity, Apollo Project, and Interstate Highways.<\/p>\n<\/li>\n<li>\n<p><strong>Historical Context and Uncertainty<\/strong>: The unprecedented nature of AI spending raises questions about its future trajectory. The article emphasizes that this spending trend has no past precedent and it&#8217;s challenging to predict outcomes given AI\u2019s current novelty.<\/p>\n<\/li>\n<li>\n<p><strong>Carlota Perez\u2019s Framework<\/strong>: An initial belief that AI spending would lead to an economic bubble due to rapid growth in spending outpacing revenue was initially dominant, aligning with Carlota Perez\u2019s insights that general-purpose technologies often create economic bubbles before achieving technological revolution.<\/p>\n<\/li>\n<li>\n<p><strong>Recent Revenue Surge<\/strong>: However, recent developments like AI agents from Anthropic and OpenAI have demonstrated significant revenue growth, challenging the bubble prediction and suggesting a closer match between AI development spending and revenue generation.<\/p>\n<\/li>\n<li>\n<p><strong>Paul Kedrosky\u2019s Perspective<\/strong>: Paul Kedrosky maintains that AI still represents a bubble, characterized by excessive infrastructure spending similar to historical events like railroads, leading to overbuilding and financial distress, mirroring earlier experiences and underlining the risk of economic crises.<\/p>\n<\/li>\n<li>\n<p><strong>Implications and Rational Bubbles<\/strong>: Kedrosky argues that this bubble stems from rational behaviors across multiple sectors (loose credit, tech, real estate, government policy) leading to an economically unsustainable level of investment and a potential future reset similar to past bubbles.<\/p>\n<\/li>\n<\/ul>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u2018Yes, AI Is a Bubble. There Is No Question.\u2019 https:\/\/www.derekthompson.org\/p\/yes-ai-is-a-bubble-there-is-no-question Publish Date: 2026-03-18 06:01:00 Source&#8230;<\/p>\n","protected":false},"author":1,"featured_media":196948,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/substackcdn.com\/image\/fetch\/$s_!nvc7!,w_1200,h_675,c_fill,f_jpg,q_auto:good,fl_progressive:steep,g_auto\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fdc4ff160-91b1-48fb-a590-84f81cfb019c_1080x846.jpeg","fifu_image_alt":"","footnotes":""},"categories":[14],"tags":[],"class_list":["post-196947","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence"],"_links":{"self":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/196947"}],"collection":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/comments?post=196947"}],"version-history":[{"count":1,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/196947\/revisions"}],"predecessor-version":[{"id":196949,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/196947\/revisions\/196949"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/media\/196948"}],"wp:attachment":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/media?parent=196947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/categories?post=196947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/tags?post=196947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}