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Are we in an AI bubble?

The perspective of an investor and former telecom analyst who witnessed the bursting of the tech bubble in the late 1990s

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    • An Amazon Web Services AI data centre in the US. As long as companies such as Amazon see AI spending as existential, they will continue to invest, and that will continue to fuel the boom in artificial intelligence, says the writer.
    • An Amazon Web Services AI data centre in the US. As long as companies such as Amazon see AI spending as existential, they will continue to invest, and that will continue to fuel the boom in artificial intelligence, says the writer. PHOTO: REUTERS

    Chris Buchbinder

    Published Sat, Dec 13, 2025 · 07:00 AM

    RECENTLY, there has been a large volume of media coverage on whether investor enthusiasm for artificial intelligence (AI) is driving the market towards an “AI bubble”.

    Having witnessed the bursting of the tech bubble in the late 1990s, I believe lessons from that experience are applicable to the current environment.

    The key question today is whether the appropriate analogy is the year 2000, which would imply that we are in a bubble that is about to burst; or 1998, which would imply the major inflection point has yet to be reached and the market may have more room to run.

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