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AI bubble
also artificial intelligence bubble or AI investment bubble
Definition of AI bubble
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: the debated claim that investment, spending, or market valuations associated with artificial intelligence have risen beyond the profits and economic value the technology is likely to produce, creating a risk of widespread losses or a market correction
- The analyst called the surge in data-center spending evidence of an AI bubble, while her colleague argued that long-term demand would justify it.
- Even if some startups fail, that alone would not prove that the entire AI sector was an AI bubble.
Two meanings, one word
In everyday English
(financial bubble) a period when asset prices rise far above what their underlying value can support, often followed by a sharp decline.
In AI
The debated claim that investment, spending, or market valuations associated with artificial intelligence have risen beyond the profits and economic value the technology…
Origin & history
Writers were explicitly warning about an artificial-intelligence bubble by 2017. The phrase became much more common after the generative-AI boom that began in late 2022, as spending on chips and data centers and the valuations of AI-linked companies rose rapidly.
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Cite this entry
"AI bubble." AI Dictionary, Dadgogo, https://dadgogo.com/dictionary/ai-bubble/. Accessed 4 Oct. 2026.