The AI Bubble Is About to Burst (Here's Why)

The AI bubble is about to burst. Energy costs, chip shortages and computer pricing are reaching unsustainable levels. The economics don't add up anymore and something has to crack.

In this episode of Razorwire Raw, Jim Rees explains why AI is hitting an economic wall nobody's talking about.

World energy consumption is climbing vertically because of AI. Data centres are on hold because there isn't enough electricity. GPU, RAM and CPU prices are spiralling. Large language model providers are raising prices because compute costs are exploding.

Organisations that replaced staff with AI agents are about to get bills they didn't anticipate. The infrastructure to scale AI at the rate everyone wants simply doesn't exist yet. Green energy won't solve this. Fossil fuels can't cope.

Either power generation revolutionises, chip production catches up, or AI companies collapse under their own operating costs. So what does this mean for organisations banking on AI transformation?

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