According to a recent 24/7 Wall St. piece, there’s a growing argument among some investors that the current AI boom could be a bubble — and that shorting the entire AI ecosystem might be a viable bet. The core thesis: much of the AI value being celebrated today depends on heavy spending, but not on actual paying customers. As the article puts it, “if people won’t pay for it … it’s not a good business.”
One of the biggest concerns is monetization. The authors argue that most users currently access AI tools for free, and very few convert into paying customers. This model might be sustainable in the short run, but with trillions of dollars already poured into infrastructure and R&D, the risk becomes whether future revenues can match today’s hype.
Another factor in the cautionary case is cost structure. AI companies are investing massively in data centers, hardware, and compute — yet if their offerings remain largely free or low-margin, the business case looks shaky. The article suggests that “utilities, big tech, financial firms funding data centers, and VCs backing AI” could all be exposed if the bubble bursts.
Finally, for investors looking to hedge or short, the piece implies a multi-pronged play: betting against not just core AI companies, but also infrastructure plays (like data-center builders) and venture-backed names with unproven monetization. The risk is systemic — not limited to one startup or chipmaker.
