Wed, Nov 19, 2025 11:56

The current zeitgeist suggests we’re in an AI bubble, and it may even be starting to deflate as I write this. With that in mind, I’ve been revisiting writing on how speculative bubbles, despite their excesses, often leave behind long-term benefits. The basic idea is that while an AI bubble might eventually burst—especially if expectations around the silly idea of “general artificial intelligence” prove unrealistic—the massive buildout of data centers, energy infrastructure, and computational resources could form the foundation for future waves of innovation.

Here are some relevant readings:

• Ben Thompson at Stratechery on “The Benefits of Bubbles”, where he examines several influential books that broaden our understanding of how bubbles shape technological progress.
• He also references Jerry Neumann’s essay at Reaction Wheel, which incorporates ideas from Carlota Perez’s theory of technological revolutions—particularly the notion that after a period of speculative frenzy, a deployment phase follows, during which new technologies are widely adopted and integrated into the broader economy.