Is the Artificial Intelligence Bubble About to Burst? Venture Capitalists Warn It May Happen Next Year


U.S. Senator Warren warns that the AI industry faces risks similar to the 2008 financial crisis, pointing out that its rapid development and high leverage financing may create a bubble, threatening financial stability. She emphasizes that AI company revenue growth is not keeping up with increasing expenses, indicating unhealthy financial conditions.
Despite ongoing concerns about the AI bubble, venture capital remains enthusiastic about the AI chip sector. Within just three days this week, three startups raised over $1.1 billion, indicating that investors are optimistic about emerging forces challenging Nvidia. MatX, founded by former Google engineers, secured $500 million in funding and plans to launch its first chip, MatX One, later this year. Its focus differs from companies like Groq, which emphasize inference.
Sanqi Interactive has expanded from gaming into AI investment, making strategic investments in cutting-edge technology companies such as Zhipu AI and Moonlight Dark Side. The goal is to use AI technology to enhance productivity in the gaming industry. With Zhipu AI's listing as the first global large model company, its market value has exceeded 57.8 billion HKD, demonstrating the initial success of its technological transformation.
Early 2025, Trump's tariff pressures affected global technology companies. Starting in October, markets worried about the AI bubble, and investors became more cautious toward high-valued AI companies. As a major AI investor, SoftBank Group saw its stock plummet by 40% from October 31 to November 26, with a loss of nearly $50 billion in market value. This volatility was caused by multiple factors, not a single event.
The rapid development of AI technology has raised concerns about a market bubble. An independent research institution pointed out that the scale of the AI bubble is astonishing, 17 times that of the internet bubble at the end of the last century. Analysts emphasized that the low-interest environment has fueled the AI investment boom.