(0:00) Open
(1:35) The Race is On
(3:26) What’s a Bubble?
(11:34) The Scale of These AI Investment Numbers
(18:03) The Circle of Investing
(26:04) How Might This End?
(27:28) Final Thoughts
(30:13) cj’s recommendation: The AI Daily Brief: 5 Reasons AI is A Bubble (And 5 It's Not)
(31:04) Jeff’s Recommendation: The Big Short
The race for Generative AI is driving trillion-dollar valuations and creating instant fortunes, but is this truly a digital gold rush, or a massive speculative bubble?
This episode the guys dissect the terrifyingly familiar warning signs, from companies with thin revenue streams commanding astronomical prices to a $1.2 trillion debt load funding an infrastructure build-out that's outpacing necessary market adoption - or is it? They try to make sense of the complex web of circular investing—where massive deals between giants like Nvidia, OpenAI, and Oracle look less like market growth and more like internal capital round-tripping to inflate perceived scale.
The technology is revolutionary, there’s no doubt. But are the valuations a silicon mirage, backed by insufficient revenue projections and a Shiller P/E ratio not seen since the dot-com crash?
Tune in as we ask the trillion-dollar question: When the euphoria ends and concrete results are demanded, will the financial history books record a boom or a spectacular bust?
Internal Oracle Data Show Financial Challenge of Renting Out Nvidia Chips — The Information
OpenAI, Nvidia Fuel $1 Trillion AI Market With Web of Circular Deals
JPMorgan Says $1.2 Trillion Debt Tied to AI Tops Bank High Grade - Bloomberg
Is Silicon Valley repeating dot-com bubble mistakes with AI frenzy? - Los Angeles Times
Is AI fueling a stock market bubble? We debate it.
🧠 How Nvidia and OpenAI Fuel the $5 Trillion AI Money Machine
The AI Economy Keeps Doing Deals With Itself
The AI bubble and the US economy – Michael Roberts Blog
🫧 Is AI a bubble? - by Azeem Azhar and Nathan Warren
5 Reasons AI is A Bubble (And 5 It's Not)