Warning of investment bubble and risk of 2008-style collapse in artificial intelligence sector

Gil Duran, author of the book The Nerd Reich, expressed serious concerns about the financial sustainability of the trillions of dollars flowing into the artificial intelligence sector. Arguing that spending in the sector is disproportionate to the revenues generated, Duran suggested that this situation creates an investment bubble and that companies could need public support in the event of a potential crisis.

Gil Duran stated that at a time when the political influence of tech billionaires is increasing, capital flow in the field of artificial intelligence has reached a risky dimension. Emphasizing that heavy investments, particularly in data centers, cannot be met with revenues that still remain at the level of billions of dollars, Duran stated that the sector has a financially fragile structure.

Duran argued that some companies in the sector could reach a 'too big to fail' position in a potential market collapse and demand support from the federal government. Comparing this scenario to the bailout packages provided to banks during the 2008 global financial crisis, the author noted that uncertainties regarding the economic future of artificial intelligence persist.