AI Bubble 2027

Source: Where’s Your Ed At Date: 2025-08-27 URL: https://www.wheresyoured.at/ai-bubble-2027/

Summary

Zitron argues the AI bubble will burst through cascading failures over 18+ months rather than a single dramatic event. Key pressure points: NVIDIA’s growth slowdown, VC depletion within ~6 quarters, collapse of major labs, and Big Tech withdrawal from AI infrastructure spending. The bubble persists on ‘vibes not returns’ — 95% of organizations get zero ROI from generative AI. CoreWeave’s financial crisis and OpenAI’s $30B annual Oracle commitments by 2028 are the most concrete near-term stress points.

Implications

• The 6-quarter VC depletion timeline is the key clock. If accurate (~mid-2027), that’s the window in which the infrastructure buildout must either justify itself or begin unwinding.
• CoreWeave is the canary. As NVIDIA’s incubated GPU rental vehicle, CoreWeave’s financial health is a direct proxy for whether actual GPU demand exists outside the circular funding system.
• 95% zero-ROI claim needs sourcing verification. If defensible, it’s the single most important data point in the AI productivity debate.