Dear Insider,
The AI bubble will burst, the only question is when. Our author Sarah Douag put this sentence at the beginning of her article today. Why? The AI bubble is now 17 times bigger than the dotcom bubble, warns the International Monetary Fund. Critics also note that far too much money is being invested in the "AI" niche. Investors include tech companies from the hospitality industry such as RateGain and Mews, which have invested in takeovers, but Marriott, Accor, Iberostar and others are also investing in this field.
Everyone is betting on growth, all around the globe. The biggest beneficiary of the massive increase in investment in AI applications and data centres is the American chip giant Nvidia. It was the first company to reach a market capitalisation of $5 trillion in October. By way of comparison: The GDP of Germany as a whole was €4.3 trillion in 2024.
If the global chip manufacturer coughs, the whole bubble wobbles. Fortunately, it was able to report positive Q3 results yesterday. Nevertheless, the heat remains. In this international context, Sarah's brand-new article today is a big win.
