From Top Electric.
In 2025, artificial intelligence has become the hottest sector in global investment. AI startups now attract 64% of all U.S. venture capital funding, with giants like OpenAI valued at $300 billion despite not being publicly traded or consistently profitable. At the same time, Google, Meta, and Amazon are pouring hundreds of billions into AI infrastructure, creating an arms race for both talent and computing power.
But beneath the excitement lies a troubling reality: over 70% of AI startups still generate no operating revenue. Experts are warning that this investment frenzy is beginning to resemble the dot-com bubble of the early 2000s a cycle of soaring valuations, unrealistic expectations, and eventual collapse.
The parallels are striking. During the dot-com era, the NASDAQ rose nearly 400% before crashing 78%, wiping out billions in value. Today’s AI surge shows the same symptoms: speculative valuations, financial contagion risks, regulatory uncertainty, and a growing gap between promises and reality.
From lawsuits against AI platforms to Nvidia’s sudden $200 billion market wipeout, signs of volatility are everywhere. The trillion-dollar question is whether AI will truly deliver the revolutionary productivity investors expect or if this boom is destined to burst.
History tells us bubbles always end. The only mystery is which companies will emerge as the Amazons and Googles of the AI age.
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