Talk about The AI bubble has been everywhere lately, with leading tech companies like Google, Meta, and Microsoft doubling their AI investments for 2026. But how have analysts in the past accurately identified the formation of tech bubbles? Hosts Michael Calore and Lauren Goode meet with Brian Merchant, WIRED contributor and newsletter writer Blood in the machine break down four criteria that some researchers have used in the past to understand and prepare for the worst.
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Transcription
Please note: this is an automatic transcription and may contain errors.
Michael Calore: Hey Lauren, how are you?
Lauren Goode: I’m fine, Mike. It’s earnings season, and many office workers at WIRED are following tech companies’ earnings reports and earnings calls. And I guess that basically means it’s CapEx season.
Michael Calore: CapEx?
Lauren Goode: Capital expenditure.
Michael Calore: You say CapEx?
Lauren Goode: Yes. Now that I’m a business reporter, I say CapEx.
Michael Calore: You are one of them.
Lauren Goode: I spread it at parties. No, really not. However, we see a trend where tech companies are sleeping on piles of money, but not just sleeping on it. They share gigantic spending plans for this and especially for AI infrastructure.
Michael Calore: Normal. Data centers.
Lauren Goode: Yes, more data centers. Not just data centers, but yes, that’s a gigantic part of it.