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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.
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'Blunt Corruption': Trump DOJ Hands Google an Antitrust Win After Tech Giant's Ballroom Donation
Alphabet, Google's parent company, is contributing $22 million to the president's ballroom project.
Nov 06, 2025
The US Justice Department has reportedly given the tech behemoth Alphabet a green light to acquire the cybersecurity firm Wiz after it was revealed that the Google parent company donated to President Donald Trump's $300 million ballroom project.
The merger deal is valued at over $30 billion and would mark Alphabet's largest acquisition to date, even as the company faces antitrust cases at the state and federal level. Wiz CEO Assaf Rappaport announced the Justice Department's decision on Wednesday at an event hosted by the Wall Street Journal.
The DOJ approval came after Bloomberg reported in June that the Justice Department's antitrust arm was reviewing whether Alphabet's acquisition of Wiz would illegally undermine competition. The following month, the Justice Department ousted two of its top antitrust officials amid internal conflict over shady corporate settlement deals.
Lee Hepner, an antitrust attorney and senior legal counsel for the American Economic Liberties Project, called the DOJ's clearing of Alphabet's Wiz acquisition "the kind of blunt corruption that most won't notice."
Hepner observed that news of the approval came shortly after the White House released a list of individuals and corporations that have pumped money into Trump's gaudy ballroom project. Google—which also donated to Trump's inauguration—was one of the prominent names on the list, alongside Amazon, Apple, and other major corporations.
Google is reportedly funneling $22 million to the ballroom project.
"These giant corporations aren't funding the Trump ballroom debacle out of a sense of civic pride," Robert Weissman, co-president of the consumer advocacy group Public Citizen, said earlier this week. "They have massive interests before the federal government and they undoubtedly hope to curry favor with, and receive favorable treatment from, the Trump administration."
"Millions to fund Trump's architectural whims are nothing compared to the billions at stake in procurement, regulatory, and enforcement decisions," he added.
According to a Public Citizen report published Monday, two-thirds of the 24 known corporate donors to Trump's ballroom project—including Google—are beneficiaries of recent government contracts.
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Trump Throws Tantrum After EU Shows What It Looks Like to Hold Tech Giants Like Google to Account
"They should get their money back!" Trump said while defending America's tech giants.
Sep 05, 2025
US President Donald Trump on Friday angrily lashed out after the European Commission slapped tech giant Google with a $3.45 billion fine for violating antitrust laws.
The European Commission ordered Google to end its anticompetitive practices such as its payments to ensure its search engine receives preferential treatment on internet browsers and mobile phones. The commission also demanded that Google "implement measures to cease its inherent conflicts of interest along the adtech supply chain."
EU competition chief Teresa Ribera said that the decision demonstrated that "Google abused its dominant position in adtech harming publishers, advertisers, and consumers" and that it must "must now come forward with a serious remedy to address its conflicts of interest, and if it fails to do so, we will not hesitate to impose strong remedies."
Shortly after the ruling, Trump took to Truth Social to blast Europe for enforcing its antitrust laws.
"Europe today 'hit' another great American company, Google, with a $3.5 billion fine, effectively taking money that would otherwise go to American investments and jobs," Trump wrote. "Very unfair, and the American taxpayer will not stand for it! As I have said before, my administration will NOT allow these discriminatory actions to stand. Apple, as an example, was forced to pay $17 billion in a fine that, in my opinion, should not have been charged—they should get their money back!"
Trump added that "we cannot let this happen to brilliant and unprecedented American Ingenuity and, if it does, I will be forced to start a Section 301 proceeding to nullify the unfair penalties being charged to these taxpaying American companies."
Max von Thun, Europe director for anti-monopoly think tank Open Markets Institute, had a decidedly different take from the president, and praised the European Commission for taking an "important first step in breaking Google's chokehold over the underlying architecture not merely of the internet, but of the free press in the 21st century."
"It is only right that Google pays the price for its blatant and long-standing lawbreaking," he added. "More importantly however, the commission has given Google two months to end its illegal practices and resolve the profound conflicts of interest which arise from its control of every layer of the adtech stack."
The European Commission's decision stood in stark contrast to a decision issued earlier this week from Judge Amit Mehta of the US District Court for the District of Columbia, who declined to force Google to sell off its Chrome web browser or share all requested data with its competitors despite finding that the company had violated American antitrust laws.
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