Everywhere you look — especially on LinkedIn — alarmists are yelling from the rooftops about the AI bubble.
Each one thinks they’re Paul Revere, galloping from town to town shouting, “The bubble is coming! The bubble is coming!”
But here’s the thing: my hair’s not on fire.
I’m not panicking.
And if you understand how technology and markets actually work, you shouldn’t be either.
There Are Bigger Bubbles Than AI
Everyone’s talking about the AI bubble, but have you noticed how many other bubbles — and outright problems — are all around us?
- Corruption
- Censorship
- Wrong-headed political or ideological agendas
- Multi-unit housing that’s clearly overbuilt
- Used cars that already were in a bubble
- New cars that are way overpriced
- Government officials who refuse to punish real criminals — but seem eager to target political opponents
When you look at the bigger picture, is the AI bubble really our biggest problem?
Probably not.
The Financial Side of the “AI Bubble”
Let’s be honest: yes, there’s some overvaluation happening.
When the AI bubble pops, the top seven AI stocks could easily drop 50%.
But if any investor is still heavily invested in those companies after months of warnings, I don’t feel sorry for them.
Anyone who’s even halfway awake sees this coming.
If greed kept them in too long, that’s on them — not the market.
Financially speaking, this isn’t a mystery.
The pattern is the same as every other investment bubble:
- Early discovery.
- Rapid hype.
- Overvaluation.
- Panic correction.
- Long-term stabilization.
If you understand that cycle, you don’t need to panic — you just need to act intelligently.
The Technical Side Is Also a Bubble
The technical hype has been just as wild as the financial hype.
A couple of years ago, self-proclaimed AI experts — let’s call them AI clowns — were loudly predicting that:
AGI will arrive next year!”
“Humanoid robots will replace every worker!”
“AI will take every job, including programmers!
Yawn.
Anyone with real AI experience knew that wasn’t going to happen anytime soon.
We’ve seen this movie before.
In the 1980s, “expert systems” were supposed to replace everyone too.
They didn’t. And neither will generative AI or humanoid robots — not yet, and maybe not for decades.
There Are Really Two AI Bubbles
- The Financial Bubble: Overhyped valuations, excessive capital chasing unrealistic expectations.
- The Technical Bubble: Inflated claims, overpromised results, and zero understanding of real AI limitations.
If you understand either one, you already know how to stay calm.
Financially — don’t buy overhyped stocks or dump money into moonshot projects.
Technically — build prototypes, test them, make an MVP, and only scale what truly works.
That’s how professionals evaluate any technology, AI or otherwise.
The Rational Approach to AI
AI isn’t magic — it’s a tool.
If you know what it’s good at (pattern recognition, data analysis, language modeling, automation) and what it’s bad at (reasoning, creativity, judgment, ethics), you’re already ahead of 90% of the hype-driven crowd.
You don’t need to fear AI.
You just need to test, measure, and deploy intelligently:
- Start small: limited prototypes or pilot projects.
- Validate results: check accuracy, ROI, and real-world impact.
- Scale what works: turn successful MVPs into production-ready applications.
That’s not panic — that’s process.
Why Are People Running Around With Their Hair on Fire?
Because fear sells.
Because drama gets clicks.
And because very few people actually understand how to evaluate technology rationally.
If you can spot a financial bubble, you know when to get out.
If you can spot a technical bubble, you know what not to waste time or money on.
Either way — there’s no reason to panic.
The real danger isn’t the AI bubble itself.
It’s the emotional bubble — the hype, greed, and fear that cloud judgment.
The Bottom Line
When everyone else is screaming “AI bubble!”, stay calm.
Don’t buy the hype, and don’t join the hysteria.
Focus on what matters:
- Building real value with AI.
- Testing your ideas like an engineer.
- Applying common sense to both investment and technology decisions.
That’s how you survive every bubble — financial, technical, or societal.
And that’s why my hair’s not on fire.
Frequently Asked Questions
Is there really an AI bubble?
Yes, but it’s more nuanced than the headlines suggest. Financially, some AI companies are overvalued due to hype and speculation. Technically, many promises about AI replacing all jobs or achieving AGI soon are exaggerated. However, the underlying technology and business impact of AI remain strong and transformative.
What’s the difference between a financial AI bubble and a technical AI bubble?
A financial AI bubble refers to inflated stock prices and investment valuations for AI companies. A technical AI bubble refers to exaggerated claims about what AI can do — such as replacing human workers or reaching human-level intelligence. Both bubbles can coexist, but only one (financial) affects markets directly.
Should businesses stop investing in AI because of the bubble?
Not at all. Businesses should continue exploring AI — but strategically. The key is to invest in small prototypes, validate results, and scale what works. Avoid hype-driven projects and focus on practical, measurable ROI.
How can I tell if an AI project is overhyped?
Watch for red flags like:
No prototype or MVP phase
If it sounds too good to be true, it probably is.
Lack of measurable results or KPIs
Overpromised outcomes (“replace all workers,” “guaranteed AGI”)
Massive spending before testing
What’s the best way to build AI applications responsibly?
Follow a prototype → MVP → production model:
- Start small with pilot projects.
- Measure performance, accuracy, and ROI.
- Scale only what works.
- Include governance, logging, and ethical review at every stage.
This process ensures sustainable AI growth — not hype-driven chaos.
What will happen when the AI bubble bursts?
When it happens, overvalued companies and speculative investments will fall — just like in previous tech bubbles. But the real innovators and practical AI solutions will survive and thrive. History shows that the strongest ideas always emerge stronger after the correction.
Why shouldn’t I panic about the AI bubble?
Because panic doesn’t solve anything. Rational thinking, testing, and steady progress do. If you’re building or using AI responsibly — focusing on results rather than hype — you’ll come out ahead, even after the bubble bursts.
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