Where's Your Ed At

The current AI investment bubble is worse than the dot-com era, with venture capital pouring $168 billion into AI in 2025 alone—nearly half of all VC funding. Unlike the dot-com bubble where companies at least had viable business models, AI startups have negative margins that worsen with growth, unprofitable unit economics, and no path to profitability. CES 2026 showcased this dysfunction: companies demoing vaporware robots and repackaging basic chatbot features as revolutionary "AI agents." The venture capital industry has devolved into late-stage momentum investing rather than early-stage risk-taking, rewarding grifting over fundamentals. When this bubble bursts, the consequences will be catastrophic because the investments are larger, the contagion wider, and unlike dark fiber from the dot-com era, GPUs and AI infrastructure have fundamentally broken economics with no salvageable residual value.

Premium: This Is Worse Than The Dot Com Bubble

‘‘Unlike the dot-com bubble where companies at least had viable business models’’
Lol, no they didn’t.

Im thankfull I dont live in US. Hope you guys will stop this madness soon, and start legit business again.

My take is that we are right now in the building phase. Building to innovate. Building to make tokenisation cheaper. Companies that are ahead in the race are going to win; that is a no-brainer.
But companies that don’t make fruit of the use of AI are going to be heavily affected as investors withdraw their money from stocks. This is going to be the measure phase. Where we measure the progress of AI as an industry.
The next phase would be when the so-to-be understood as a “bubble” would burst. That is when you should be careful. I don’t foresee these happening in 2026, as there are many corporate deals and investments made in 2025 itself. Hence, 2027-2028 might be when the bubble bursts.
Unless AI pivots and genuinely brings out profitable change

When this happens world’s biggest IT companies will have biggest hit who is promoting it madly.

Well, AI is here to stay. Yes, this is starting phase where it will take time to become stable. Companies are working in specific segments of the modals, which would transform most of the industries and it’s business.
Nothing is achieved in one moment, defined success needs time.
Currently, all the companies are investing in state of FOMO and needs success in short span of time. It is creating many gaps, not the innovating one. The ROI is not defined and analyzed properly by many companies. They are implementing the AI, where it is not required at all.
Finally, Humans has to use AI smartly instead of implementing every place since AI is confident lier too.