Today in Focus Is AI a bubble that’s about to pop?
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Dec 8, 2025 
Blake Montgomery, Tech Editor for The Guardian US, dives deep into the intricacies of the AI landscape. He discusses the significant economic footprint of AI and the 'Magnificent Seven' stocks dominating the market. Concerns emerge over massive investments and whether companies like OpenAI can achieve profitability. Blake highlights the systemic risks posed by circular investments and compares the potential fallout of an AI crash to past market bubbles. He ultimately suggests the risks are real, but a total bust may not be imminent.
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Infrastructure Spending Fuels The Hype
- Massive spending on AI infrastructure recently outpaced typical drivers like consumer spending.
- This outsized investment fuels fears that current growth is driven more by infrastructure build-out than by proven revenue streams.
Be Cautious About AI Revenue Promises
- Recognize that large AI labs like OpenAI currently run big losses and may not profit for years.
- Treat AI investments with caution and demand clear plans for sustainable revenue before assuming returns.
NVIDIA Sits At The Centre Of AI Finance
- NVIDIA's GPUs are central to the AI supply chain and face multi-year backlogs.
- The close investing and buying ties between chipmakers and AI firms create circular financial risks across the sector.