Podcasts · The Most Interesting Thing in AI

The Case Against the AI Bubble - Azeem Azhar with Nicholas Thompson

23 Sep 2026 · 1 h 05 min

Among the many eye-popping numbers of the AI industry—from trillions in investments to billions in spending—one stands out: $0 in profit among leading AI companies. According to Bloomberg, “never before has so much money been spent so rapidly on a technology that, for all its potential, remains largely unproven as an avenue for profit-making.” That imbalance, and the industry’s reliance on circular financing, has led to fears of a bubble. But those concerns are overblown, according to Azeem Azhar, author of the Exponential View newsletter, who earlier this year released a report on the AI economy.

In conversation with Nicholas Thompson, CEO of The Atlantic, Azhar expands on his findings. He says AI’s finances are sound: the demand is there, revenue is growing, and the technology will advance enough to deliver on the necessary ROI.

Produced independently of The Atlantic’s editorial staff. Supporting sponsor: PwC.

(00:00) Introduction

(03:40) Mapping the AI economy through forensic accounting

(07:50) How to think about infrastructure spend

(16:30) The "J-curve" of AI adoption

(24:00) How cheaper tokens will change the market

(27:17) China's AI strategy

(40:22) Is there something that could break Azeem’s model?

(48:34) What could happen when the AI firms IPO

(53:34) The effects of the culture in Silicon Valley

(56:34) Which bubble-breaker scenario worries Azeem the most

(59:16) What Azeem would do if he had an unlimited budget to invest in AI

Learn more about your ad choices. Visit podcastchoices.com/adchoices

Links in the notes 1

• https://podcastchoices.com/adchoices