Wheneven Sam Altman thinks there is an AI bubble, then there most likely is an AI bubble. But it’s even worse than that. There isn’t just one AI bubble: there are three.

First, AI is almost certainly in what economists call an asset bubble or a speculative bubble. As the name suggests, this is when asset prices soar well above their fundamental value. A classic example of this kind of bubble is the Dutch “tulip mania” of the 17th century, when speculators drove up the price of tulip bulbs to astronomical heights, convinced that there would always be someone willing to pay more than they had.

As I write, Nvidia is trading at 50 times earnings, Tesla at an astounding 200 times, despite falling revenues, while the rest of the Magnificent 7 (Google, Amazon, Apple, Microsoft, and Meta) are en

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