The AI Bubble Is Going to Pop
The AI sector is in a speculative bubble facing an inevitable reckoning. Despite breathtaking revenue growth, critical examination reveals companies hemorrhaging cash with structurally inferior gross margins of around 25%—far below traditional SaaS standards. This economic flaw is compounded by a brewing infrastructure crisis, as soaring power demand strains grids and data center construction faces seven-year timelines. Current valuations based on “hype” rather than sustainable unit economics signal a painful market correction ahead.
