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AI still looks like a bubble – December 2025

Author/Source: Alex Heath See the full link here

Takeaway

This article talks about worries that the current excitement and huge investments in AI technology might be an economic bubble, similar to past tech booms. You will learn why some experts believe the high costs and unclear benefits of AI models could lead to problems.


Technical Subject Understandability

Beginner


Analogy/Comparison

Investing in AI right now is like everyone rushing to buy a specific type of super-fast car because it’s popular, even if it’s very expensive to run and we’re not sure where everyone will drive it yet.


Why It Matters

If the AI market is a bubble, many companies and people investing in it could lose a lot of money when it eventually slows down. This could mean that useful new AI tools might not become available or could be too costly for everyday use, impacting how technology helps us in the future.


Related Terms

AI bubble, Large language models (LLMs), Valuation. Jargon Conversion: An AI bubble is when a lot of money is invested in Artificial Intelligence companies, making them seem much more valuable than they actually are right now. Large language models (LLMs) are computer programs that can understand and create human-like text, like the chatbots you might talk to online. Valuation is the estimated worth of a company in money.

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