Why there's an AI bubble and why you shouldn't ignore it

We may well be in an AI bubble — the money, momentum and magical thinking all point that way.

Why it matters: A financial bubble doesn't mean AI won't transform the way we live and work. • It means the risks are higher — for investors, for partners tethered to OpenAI, Google and Microsoft, and for the broader economy — if trillion-dollar bets don't pay off.

The big picture: Bubble talk is everywhere. Mentions of "AI bubble" rose 880% since last quarter's investor calls, according to AlphaSense.

What they're saying: Speakers at recent Axios events were buzzing about the risks of an overheated market and buzzing about the buzz itself. • "Some parts of AI are probably in a bubble," Google DeepMind CEO Demis Hassabis told Axios' Mike Allen at the AI+ Summit on Dec. 4. But, he added, "It