The AI Bubble: Déjà Vu or a New Paradigm?

2025-08-25

This article explores whether the current surge in AI investment constitutes a bubble, drawing parallels to historical examples like the Railway Mania and the dot-com bubble. The author highlights common patterns in tech bubbles: technological breakthroughs, capital influx, speculative frenzy, and reality checks. Despite the unprecedented transparency of the current AI bubble, the allure of participation remains strong. The article concludes by examining reasons why AI might defy historical patterns, strategies for profiting from the inevitable correction, and the importance of rational investment and risk management.