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


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.
In a recent interview, Bret Taylor, Chairman of the Board of OpenAI, expressed his views on the current situation in the field of artificial intelligence (AI). He believes that we are currently in an AI bubble, which is similar to the internet bubble at the end of the 1990s. In this conversation with The Verge, Taylor stated that he agrees with OpenAI's CEO Sam Altman that many investors will face challenges in the AI field.
According to Reuters, citing sources and a report by The Information, SoftBank CEO Masayoshi Son is reportedly planning to borrow $160 billion for investments in artificial intelligence (AI). The report states that company executives confirmed this intention during talks with banks last week. This move signals SoftBank's continued expansion in the AI sector, particularly amid intensifying global tech competition. Beyond the planned $160 billion, SoftBank is projected to have...
According to a recent survey, more and more US companies are moving from testing artificial intelligence (AI) to full implementation. The survey, conducted by US venture capital firm Menlo Ventures between September and October 2024, involved 600 IT decision makers and revealed that the total AI investment in the US reached $2.3 billion in 2023, skyrocketing to $13.8 billion in 2024, marking a sixfold increase. The participants came from companies with at least 50 employees, indicating that AI is gradually