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Google Lost $500 Billion in a Single Day. What Could That Possibly Have to Do with the AI Bubble?
Then again, you probably already get it.
It’s easy to see why people are tired of the endless talk about the AI bubble. Especially of waiting for it to finally pop.
Everyone believes that when it does, they’ll be in trouble. For some, thinking about it is so painful that their mind’s defense mechanism kicks in.
So they convince themselves there is no AI bubble. And therefore nothing to pop. They try as hard as they can to “not think of the elephant” and force themselves to yawn whenever they hear the words “AI bubble.”
Sadly, that won’t help. You can ignore reality for a while, but sooner or later it reminds you of itself, and you feel it.
Alphabet’s Unprecedented Plunge
That’s exactly what happened on Thursday, October 29. Alphabet (Google) lost more than $500B in a single day. It was the steepest drop in the company’s history. The reason was the same as always: investors are worried about how it’s spending its money.
Google keeps pouring truly unthinkable sums into AI infrastructure. It has gotten to the point where its free cash flow for the quarter turned negative, at −$9.1…
