the state of the ai bubble
Duration
7:28
Captions
1
Language
EN
Published
Oct 17, 2025
Description
looking at a bunch of perspectives: jim cramer: https://youtu.be/-OBTIY_Jx9o?t=73 zuck: https://youtu.be/23FyskyFoP8?t=4299 hank green: https://youtu.be/Q0TpWitfxPk?t=861 paul tudor jones: https://youtu.be/Id2zHR269b8?list=RDNSId2zHR269b8&t=131 17 times the size of dot-com: https://www.morningstar.com/news/marketwatch/20251003175/the-ai-bubble-is-17-times-the-size-of-the-dot-com-frenzy-and-four-times-subprime-this-analyst-argues jeff bezos: https://www.youtube.com/watch?v=4Vf8pljp1FY ed zitron: https://youtu.be/L5b-P-ZN-LI sam altman: https://www.cnbc.com/2025/08/18/openai-sam-altman-warns-ai-market-is-in-a-bubble.html support: https://www.patreon.com/coffeezilla disclaimer (updated May 2025): voidzilla is an opinion‑driven channel that comments on the news of the day under the satirical and rhetorically hyperbolic banner “CRIME IS LEGAL.” the phrase critiques what we see as a lax or uneven regulatory enforcement environment for fraud. unlike our affiliated channel Coffeezilla, which conducts detailed investigations and source‑document deep dives, and draws opinions from that, voidzilla offers rapid‑fire commentary and criticism on information already in the public domain. statements here reflect the host’s views at the moment of recording and may become outdated as facts evolve. references to “crime,” “fraud,” “scam,” or similar terms appear in a rhetorical hyperbolic context similar to “CRIME IS LEGAL.” unless we expressly state that a court has entered a final judgment, no segment should be read as a definitive finding of legal liability. viewers are urged to consult primary sources and form independent conclusions. production of this program is public‑interest commentary protected by the First Amendment and the Texas Citizens Participation Act (TCPA). anyone featured in this program who believes a material error has occured may contact our business email with supporting documentation under the SUBJECT: "CORRECTION REQUEST". we will promptly review substantiated notices and, where appropriate, issue corrections or updates.
Captions (1)
Hello, welcome back to the void. It's
business talk time. No, I'm not on fire.
Those are just my GPUs. I want to talk
about the state of AI. Obviously,
everyone's been asking, is it a bubble?
Now, as someone who is terminally
online, I have looked high and low for
every conceivable opinion, and there are
a lot of them, and I created a little
slideshow, the state of the bubble.
First opinion, Jim Kramer, the goat,
saying, "Don't listen to the skeptics.
Keep an open AI mind." And uh he's a
believer. Even though there are
countless AI skeptics, the market
clearly believes that OpenAI can afford
to spend tens of billions of dollars on
AMD's highestend chips in addition to
Nvidia's chips. I know that I am a
believer. Now, on the other hand, you
have people questioning all the amount
of investment in these AI companies.
Someone actually asked Mark Zuckerberg,
you know, all this money you're
investing, is it worth it? Mark says,
you know, maybe we're going to misspend,
but it's worth the risk. It's a lot of
money.
>> It is. And and if and if um and if we
end up misspending a couple of hundred
billion dollars, I think that that is
going to be very unfortunate obviously.
But what I'd say is I actually think the
risk is higher on the other side. If you
if you um build too slowly and then
super intelligence is possible in 3
years, but you built it out assuming it
would be there in 5 years, then you're
just out of position
on what I think is going to be the most
important technology that enables the
most new products and innovation and
value creation in history.
>> Uh obviously, it's from a CEO's
perspective in big tech. You have to get
on board the ship just in case it takes
off and becomes the biggest product
ever. Uh, but then you also have people
outsiders maybe like Hank Green who are
looking at a series of bubbles and
saying maybe this is a bubble. Took a
little bit of time for me to parse and
once I did it kind of terrified me. I'm
going to show it to you as well. What a
good little visualization we have on our
hands here. How Nvidia and OpenAI fuel
the AI money machine. It just seems
messy. It seems like bubble mechanics to
me, you guys. So, yeah. Hang green says
maybe looks like bubble mechanics. I'm
going to remind you guys that we're
doing short clips here. So, I'll leave
the links to the full things below if
you want to watch the full videos, get
their whole perspective on the thing.
This is obviously a very truncated
version of that. I'm just trying to give
you a sense of the wide variety of takes
on this whole thing. We have Paul Tudtor
Jones saying that if there's a bubble,
it's a very small bubble. 54% of fund
managers think that we're in an AI
bubble. If it's a bubble, it's it's a
small one. If you think about the
bubbles of the past three or four
decades, the Nikki in ' 89, NASDAQ in
99, biotech 2000 in the just after 2011
12, China 2007, all those were 4 to 600%
gains. The NASDAQ's up 200% off the
bottom. So, I don't know whether we're
going to blow off like we did in 1999.
Is it possible? Are all the ingredients
in place? Uh I think clearly they are.
For me the the one thing that you can
never ever forget is that a year from
today assuming that the president gets
his wishes that the Fed funds rates
going to probably be 2.5% overnight
rates or 275.
Uh that's a really compelling story for
higher equity prices.
>> So there you go. all the ingredients
might be in place but it could go higher
from here is uh Paul's point because of
some macroeconomics
then you also have the perspective that
actually it's a huge bubble not a small
one according to one analyst the AI
bubble is 17 times the size of the dot
frenzy and four times the subprime and
then you even have takes that like yes
it's a bubble but it's not going to pop
yet I've seen that a lot
>> are we in an AI bubble of course right
you know we were in that bubble you know
of Of course we are. I mean, you know,
we're hyped. We're accelerating. We're
putting enormous leverage uh into the
system. You know, that said, I don't see
it ending for several years.
>> Uh on top of that, of course, we have
the opinion, I didn't represent it too
much here, but that it's a bubble and
that it's bad. This is probably most
spearheaded by Ed Zitron.
>> The big question is whether or not all
of this AI spending is a bubble.
>> Yes, you have committed to failure.
There is no doing this. if they gave
every dollar just to Sam Orman, the guy
who can't even tell you why you're
giving the money to him. No one else has
a big business doing this. Even Claude
Code with Anthropic, which is
theoretically meant to be super popular,
33 million a month. That's that's less
than the Cincinnati Reds make. Ed's
argument basically boils down to they're
spending way too much money on AI. It
doesn't justify itself in revenues, and
perhaps the industry is just a much
smaller industry than people are betting
on. It's not going to be some trillion
dollar industry. And then finally, you
have the the of course the perspective
that yes, it's a bubble, but it's but it
it's good. It's a good thing that it's
it's a bubble. Actually,
>> if you go back like the the '9s had a
biotech bubble and there were a bunch of
uh pharma startup companies that were
designing drugs and using new techniques
and the world got very excited. The
investment world got very excited. as a
group, they all lost money. But we did
get a couple of life-saving drugs. A
bubble like a a a banking bubble, a
crisis in the banking system, that's
just bad. That's like 2008.
And so that's you. Those bubbles society
wants to avoid. The ones that are
industrial are not nearly as bad. It
could even be good because when the dust
settles and you see who are the winners,
society benefits from those inventions.
They still get those life-saving drugs.
And that's what's going to happen here,
too. This is real. The benefits to
society from AI are going to be
gigantic.
>> Well, there it is. There's all the
possible perspectives I could find on
AI. It's not a bubble. It is a bubble.
It's a small bubble. It's a big bubble.
It's a bad bubble. It's a good bubble.
And I just want to remind you that no,
nobody really knows what the future
holds, lest you want to go ahead and
short the market. Just know that timing
the market is never really that easy and
usually fails. So, I'm certainly not
advocating anyone run out and change
their financial position. I just wanted
to summarize what has been confusing me
lately, which is that I've been looking
looking at this industry wondering,
yeah, I I is it a bubble? And if so, how
big and when is it going to pop, if
ever? And so far, I've heard from a lot
of people, some smart, some not. And
almost no one agrees. Well, at least on
the specifics. I should say as I was
reviewing this, I was like, well,
actually, most people think it is a
bubble of some kind. It's just like, is
it a good bubble bet? Like, what type is
it? Uh, that's where everyone disagrees.
I will say it it was hard to find people
who said there's no overspending going
on. I think I even found a Sam Alman
quote saying that you know in a private
dinner he acknowledged that maybe some
people are going to overspend. So I
think most people who are paying
attention I guess I should say will
admit it's frothy but uh exactly how bad
things are, how unsustainable things are
is where everyone just kind of wildly
disagrees. And yeah, that's the state of
the bubble.