Fortune (magazine)

AI Investment Boom Sets Stage for Historic Economic Bust

The AI investment surge hitting $364 billion this year echoes historical tech bubbles that ended in economic collapse. With projections reaching $5.2 trillion by 2030, indicators suggest we’re headed for a major correction that could dwarf previous tech busts.

The artificial intelligence investment boom has become the single biggest factor propping up the U.S. economy, with tech giants expected to pour $364 billion into AI development this year alone according to recent analysis. This staggering figure dwarfs even IBM’s legendary $5 billion “bet-the-company” gamble in the 1960s that Fortune magazine called unprecedented for its era. Yet history shows that such massive technological investments often lead to overexpansion, market saturation, and eventual economic collapse.