The AI bubble is built on impossible math, tiny revenue, massive leverage, and belief that gravity no longer applies. So this is what 2008 felt like?

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This is the part where bubbles always start lying to people. JPMorgan is literally listing the same warning signs we heard before 2000 and 2008, but everyone shrugs because the word AI sounds magical. When companies are burning insane amounts of cash and promising the future will fix it later, that is not innovation, that is leverage dressed up as destiny. A trillion in infrastructure for a fraction of the revenue is not confidence, it is desperation. If demand hiccups even a little, this thing does not deflate gently, it snaps.

JPMorgan lists the exact bubble markers:

  • “Abundance and availability of credit”
  • “Increasing leverage”
  • “Decaying underwriting standards”
  • “Gap between valuations and cash flows”

https://privatebank.jpmorgan.com/nam/en/insights/markets-and-investing/ideas-and-insights/is-ai-a-bubble-here-are-5-ways-to-find-out

Harvard Gazette warns of systemic risk

  • The AI bubble could “disrupt the entire economy.”
  • Hyperscalers are taking on liabilities large enough to create systemic exposure.

https://news.harvard.edu/gazette/story/2025/12/should-u-s-be-worried-about-ai-bubble/

This is the same type of systemic‑risk language used in 2008.

What if the AI revolution isn’t the unstoppable force it seems to be? While headlines celebrate breakthroughs in machine learning and the meteoric rise of companies like OpenAI and Nvidia, a less glamorous story is unfolding beneath the surface, one of unsustainable spending, speculative investments, and financial entanglements that could unravel the entire industry. Consider this: OpenAI has committed to infrastructure spending of $1.15 trillion over the next five years, yet its projected revenue for 2025 is a mere $20 billion. This staggering imbalance isn’t just a red flag for one company, it’s a warning sign for an entire sector that’s chasing growth at all costs, much like the dot-com bubble of the late 1990s. Could the AI boom we’re witnessing today be little more than a house of cards?

https://www.geeky-gadgets.com/openai-infrastructure-costs-ai-bubble/