"It's hard to avoid the conclusion that the market for artificial intelligence and its associated industries are over inflated. In 2025, just five hyperscalers-Alphabet, Meta, Microsoft, Amazon, and Oracle-accounted for a capital investment of $399 billion, which will rise to over $600 billion annually in coming years. For the first nine months of last year, real GDP growth rate in the U.S. was 2.1%, but would have been 1.5% without the contribution of AI investment."
"This dependence is dangerous. A recent note by Deutsche Bank questioned whether this boon might in fact be a bubble, noting the historically unprecedented concentration of the industry, which now accounts for around 35% of total U.S. market capitalization, with the top 10 U.S. companies making up more than 20% of the global equity market value. For such an investment to yield no benefit would be a failure of unprecedented proportions."
A small number of hyperscalers made massive capital investments in AI—$399 billion in 2025 across five firms, projected to exceed $600 billion annually. AI investment materially lifted U.S. GDP growth by roughly 0.6 percentage points in the first nine months of the prior year. The industry shows historically unprecedented concentration, representing about 35% of U.S. market capitalization and the top 10 U.S. companies more than 20% of global equity value. Such concentration raises the risk of a bubble and systemic failure. Historical examples show that excluding broad feedback and offloading costs can produce catastrophic investor losses and human harm. Trustworthy AI requires accountability and broader inclusion.
Read at Fast Company
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