Big Technology Podcast Inside The AI Bubble: Debt, Depreciation, and Losses — With Gil Luria
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Nov 14, 2025 
Gil Luria, head of technology research at D.A. Davidson, dives into the risks of the AI bubble. He warns about unhealthy investment behaviors and the dangers of debt in speculative AI ventures. The discussion includes Michael Burry's concerns about depreciation in tech assets, emphasizing how this could threaten profitability. Luria explores the incentives behind banks lending to AI data centers and considers how failing demand could have systemic implications. The chat also touches on how rapid tech advancements might render older hardware obsolete.
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Speculative Borrowing Creates Fragility
- Borrowing to build data centers based on speculative promises from startups is dangerous.
- Gil argues Oracle and others leveraged on OpenAI's uncertain future, creating unhealthy financial exposure.
Banks Chasing AI Deals Repeat Old Mistakes
- Large banks and major lenders are financing risky AI infrastructure deals despite uncertain long-term demand.
- Gil suggests lenders chase fees and bonuses, lacking downside incentives, which repeats past crisis patterns.
Depreciation Is Being Understated
- Michael Burry's depreciation critique is valid: useful life of GPUs is shortening rapidly.
- Gil agrees that overstating multi-year useful life inflates profits and masks real economic depreciation.
