SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
The NVIDIA logo is displayed on a mobile phone with a financial stock graph visible in the background, in this photo illustration in Brussels, Belgium, on November 18, 2025.
(Photo by Jonathan Raa/NurPhoto via Getty Images)
Warnings of AI Bubble Grow Louder as Big Investors Dump Nvidia Stock
"I’m very nervous about the size of these investments in these data centers," one tech CEO said.
Nov 18, 2025
Tech industry insiders are growing more wary of a financial bubble in the artificial intelligence industry that many analysts have been warning could tip the global economy into a severe recession.
Sundar Pichai, CEO of Google parent company Alphabet, said in an interview with BBC published Tuesday that he believes the speculation currently pumping up investment in AI is akin to the kind of speculation that occurred in the late 1990s ahead of the dot-com stock crash.
"We can look back at the internet right now," he told BBC. "There was clearly a lot of excess investment, but none of us would question whether the internet was profound. I expect AI to be the same. So I think it's both rational and there are elements of irrationality through a moment like this."
PIchai said that he believed his firm would be well positioned to weather the bursting of an AI bubble, although he also cautioned that "I think no company is going to be immune, including us," were such a scenario to occur.
Sebastian Siemiatkowski, CEO of global payments network Klarna, told the Financial Times on Monday that while he still believed in the potential of AI, he also thought many of the biggest players in tech were vastly overspending to build out infrastructure that would not be needed to power the technology.
Siemiatkowski pointed to advances made this year by Chinese AI firm DeepSeek in vastly reducing the power needed to run AI as evidence that the energy-devouring data centers being constructed across the US would be a massive overbuild.
"I think OpenAI can be very successful as a company but at the same time I’m very nervous about the size of these investments in these data centers,” he said. "That’s the particular thing that I am concerned about."
Some major investors are also signaling that the boom may be over for AI.
MarketWatch reported on Monday that Palantir chairman Peter Thiel's hedge fund, Thiel Macro LLC, dropped all its shares in Nvidia, the US-based semiconductor giant that manufactures most of the chips used to power AI. The move by Thiel was revealed just one week after Japanese investment holding company SoftBank disclosed that it had divested its entire $5.8 billion stake in Nvidia.
Nvidia has also become a target for investor Michael Burry, who famously made a fortune by short-selling the US housing market ahead of the 2008 financial crisis, and who recently revealed that his firm was making bets against Nvidia and Palantir.
Concerns about a potential AI bubble have roiled global markets this week, and all major US stock indexes once again traded lower on Tuesday, marking the fourth consecutive losing session.
According to the Wall Street Journal, the current selloff is being driven by investors spooked about "lofty valuations and a pile-up of debt to build data centers," and the paper pointed to a new survey showing that "45% of fund managers see an AI bubble as the top 'tail risk' for markets" right now.
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, It’s been nearly 30 years since I co-founded Common Dreams with my late wife, Lina Newhouser. We had the radical notion that journalism should serve the public good, not corporate profits. It was clear to us from the outset what it would take to build such a project. No paid advertisements. No corporate sponsors. No millionaire publisher telling us what to think or do. Many people said we wouldn't last a year, but we proved those doubters wrong. Together with a tremendous team of journalists and dedicated staff, we built an independent media outlet free from the constraints of profits and corporate control. Our mission has always been simple: To inform. To inspire. To ignite change for the common good. Building Common Dreams was not easy. Our survival was never guaranteed. When you take on the most powerful forces—Wall Street greed, fossil fuel industry destruction, Big Tech lobbyists, and uber-rich oligarchs who have spent billions upon billions rigging the economy and democracy in their favor—the only bulwark you have is supporters who believe in your work. But here’s the urgent message from me today. It's never been this bad out there. And it's never been this hard to keep us going. At the very moment Common Dreams is most needed, the threats we face are intensifying. We need your support now more than ever. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. When everyone does the little they can afford, we are strong. But if that support retreats or dries up, so do we. Will you donate now to make sure Common Dreams not only survives but thrives? —Craig Brown, Co-founder |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
Tech industry insiders are growing more wary of a financial bubble in the artificial intelligence industry that many analysts have been warning could tip the global economy into a severe recession.
Sundar Pichai, CEO of Google parent company Alphabet, said in an interview with BBC published Tuesday that he believes the speculation currently pumping up investment in AI is akin to the kind of speculation that occurred in the late 1990s ahead of the dot-com stock crash.
"We can look back at the internet right now," he told BBC. "There was clearly a lot of excess investment, but none of us would question whether the internet was profound. I expect AI to be the same. So I think it's both rational and there are elements of irrationality through a moment like this."
PIchai said that he believed his firm would be well positioned to weather the bursting of an AI bubble, although he also cautioned that "I think no company is going to be immune, including us," were such a scenario to occur.
Sebastian Siemiatkowski, CEO of global payments network Klarna, told the Financial Times on Monday that while he still believed in the potential of AI, he also thought many of the biggest players in tech were vastly overspending to build out infrastructure that would not be needed to power the technology.
Siemiatkowski pointed to advances made this year by Chinese AI firm DeepSeek in vastly reducing the power needed to run AI as evidence that the energy-devouring data centers being constructed across the US would be a massive overbuild.
"I think OpenAI can be very successful as a company but at the same time I’m very nervous about the size of these investments in these data centers,” he said. "That’s the particular thing that I am concerned about."
Some major investors are also signaling that the boom may be over for AI.
MarketWatch reported on Monday that Palantir chairman Peter Thiel's hedge fund, Thiel Macro LLC, dropped all its shares in Nvidia, the US-based semiconductor giant that manufactures most of the chips used to power AI. The move by Thiel was revealed just one week after Japanese investment holding company SoftBank disclosed that it had divested its entire $5.8 billion stake in Nvidia.
Nvidia has also become a target for investor Michael Burry, who famously made a fortune by short-selling the US housing market ahead of the 2008 financial crisis, and who recently revealed that his firm was making bets against Nvidia and Palantir.
Concerns about a potential AI bubble have roiled global markets this week, and all major US stock indexes once again traded lower on Tuesday, marking the fourth consecutive losing session.
According to the Wall Street Journal, the current selloff is being driven by investors spooked about "lofty valuations and a pile-up of debt to build data centers," and the paper pointed to a new survey showing that "45% of fund managers see an AI bubble as the top 'tail risk' for markets" right now.
From Your Site Articles
- Any Corporate Bailouts Should Wipe Out Shareholders First ›
- 'Red Flag': Analysts Sound Major Alarms As AI Bubble Now 'Bigger' Than Subprime ›
- Ocasio-Cortez Says ‘We Should Not Be Entertaining a Bailout’ of AI Industry as Bubble Fears Grow | Common Dreams ›
- Opinion | When the AI Bubble Bursts, Working Families Will Pay the Price | Common Dreams ›
Related Articles Around the Web
Tech industry insiders are growing more wary of a financial bubble in the artificial intelligence industry that many analysts have been warning could tip the global economy into a severe recession.
Sundar Pichai, CEO of Google parent company Alphabet, said in an interview with BBC published Tuesday that he believes the speculation currently pumping up investment in AI is akin to the kind of speculation that occurred in the late 1990s ahead of the dot-com stock crash.
"We can look back at the internet right now," he told BBC. "There was clearly a lot of excess investment, but none of us would question whether the internet was profound. I expect AI to be the same. So I think it's both rational and there are elements of irrationality through a moment like this."
PIchai said that he believed his firm would be well positioned to weather the bursting of an AI bubble, although he also cautioned that "I think no company is going to be immune, including us," were such a scenario to occur.
Sebastian Siemiatkowski, CEO of global payments network Klarna, told the Financial Times on Monday that while he still believed in the potential of AI, he also thought many of the biggest players in tech were vastly overspending to build out infrastructure that would not be needed to power the technology.
Siemiatkowski pointed to advances made this year by Chinese AI firm DeepSeek in vastly reducing the power needed to run AI as evidence that the energy-devouring data centers being constructed across the US would be a massive overbuild.
"I think OpenAI can be very successful as a company but at the same time I’m very nervous about the size of these investments in these data centers,” he said. "That’s the particular thing that I am concerned about."
Some major investors are also signaling that the boom may be over for AI.
MarketWatch reported on Monday that Palantir chairman Peter Thiel's hedge fund, Thiel Macro LLC, dropped all its shares in Nvidia, the US-based semiconductor giant that manufactures most of the chips used to power AI. The move by Thiel was revealed just one week after Japanese investment holding company SoftBank disclosed that it had divested its entire $5.8 billion stake in Nvidia.
Nvidia has also become a target for investor Michael Burry, who famously made a fortune by short-selling the US housing market ahead of the 2008 financial crisis, and who recently revealed that his firm was making bets against Nvidia and Palantir.
Concerns about a potential AI bubble have roiled global markets this week, and all major US stock indexes once again traded lower on Tuesday, marking the fourth consecutive losing session.
According to the Wall Street Journal, the current selloff is being driven by investors spooked about "lofty valuations and a pile-up of debt to build data centers," and the paper pointed to a new survey showing that "45% of fund managers see an AI bubble as the top 'tail risk' for markets" right now.
From Your Site Articles
- Any Corporate Bailouts Should Wipe Out Shareholders First ›
- 'Red Flag': Analysts Sound Major Alarms As AI Bubble Now 'Bigger' Than Subprime ›
- Ocasio-Cortez Says ‘We Should Not Be Entertaining a Bailout’ of AI Industry as Bubble Fears Grow | Common Dreams ›
- Opinion | When the AI Bubble Bursts, Working Families Will Pay the Price | Common Dreams ›
Related Articles Around the Web
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.