Every tech company now seems to have their own AI: Google Gemini. OpenAI’s ChatGPT. MetaAI. Spending for AI is reaching record highs, powering a big boom for the stock market. Even the White House wants in on the fun.

So are we in an AI bubble — an overblown investment period that’s bound to deflate? Yes, argues Paul Kedrosky, a partner with SK Ventures and a fellow at MIT’s Initiative on the Digital Economy. But not the bubble everyone thinks we are in. “AI is obviously a hugely important technology,” Kedrosky told Today, Explained co-host Noel King. So what, then?

It’s the money going into the AI infrastructure like data centers that concerns Kedrosky: “We’re spending this prodigious amount of money on the underlying infrastructure for AI with probably no likelihood of recovering most

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