{"id":142689,"date":"2026-08-17T18:32:20","date_gmt":"2026-08-17T18:32:20","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/142689\/"},"modified":"2026-08-17T18:32:20","modified_gmt":"2026-08-17T18:32:20","slug":"on-thecube-pod-when-will-the-ai-bubble-burst","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/142689\/","title":{"rendered":"On theCUBE Pod: When will the AI bubble burst?"},"content":{"rendered":"

The debate over whether we are in an artificial intelligence bubble took a new turn<\/a> this week.<\/p>\n

Despite the ballooning AI spending, Dave Vellante<\/a> (pictured, right), chief analyst for theCUBE Research, contends that any bursting point may be far off<\/a>. Now that Nvidia Corp. Chief Executive Jensen Huang, has committed $500 billion<\/a> to establish independent financing platforms for AI infrastructure, the AI buildout may be too big to fail \u2014 or, at least, fail quietly.<\/a><\/p>\n

\u201cIntelligence is hard to model out,\u201d said\u00a0John Furrier<\/a> (left), executive analyst for theCUBE Research. \u201cIt\u2019s going to be highly elastic. Inference is a big part of it. Agents generate machine-dominated workloads. Robotics, high compute, falling prices, will simulate demand faster than supply will expand. If demand isn\u2019t just about the gear and it\u2019s about the intelligence it produces, we might be at the beginning of the largest consumption phase of AI.\u201d<\/p>\n

On the latest episode of theCUBE Pod<\/a>, Furrier and Vellante\u00a0looked at both sides of the AI bubble conversation. They also discussed the growth of neoclouds and why the markets are underestimating Cisco Systems Inc.<\/p>\n

Bubble or no bubble? That is the question<\/p>\n

The podcast hosts are split on the AI bubble: Vellante expects Nvidia\u2019s investments to delay the bubble bursting, while Furrier argues that there may be no bubble at all. If inference costs drop and workloads kick in, that could provide a soft landing for the industry\u2019s massive AI buildout.<\/p>\n

\u201cA bubble happens when the market prices rise exceptionally fast and prices are unusually high \u2026 which is what\u2019s happening now,\u201d Vellante said. \u201cThe question is, will the bubble burst? The first thing that could happen to burst the bubble \u2026 is that the capital runs out before the end monetization. If financing dries up before the end, before [JPMorgan Chase & Co] monetizes, that could be problematic.\u201d<\/p>\n

Vellante\u2019s recent analysis<\/a> noted that the AI supply chain is constrained by high-bandwidth memory, advanced packaging, network fabric, power and site readiness, which could delay supply relief and postpone the end of the current bubble. Huang\u2019s decision to turn AI compute into collateral through\u00a0 Nvidia\u2019s recent partnerships<\/a> ensures that if AI demand falters, it will affect the entire system of semiconductor suppliers, neoclouds and infrastructure investors.<\/p>\n

\u201cThere\u2019s two clocks,\u201d Vellante said. \u201cThere\u2019s the IT infrastructure clock, compute storage networking, that can go pretty fast. The long cycle clock is all that other stuff. It\u2019s the data centers, it\u2019s the power, it\u2019s the getting past regulatory issues. All of that takes decades sometimes. So, those two different clocks \u2026 govern the timing of that potential bubble bursting.\u201d<\/p>\n

Huang is also funding the neoclouds, which could be the most dangerous part of the whole ecosystem, according to Furrier. However, he sees the AI buildout as being fueled by a strong user base that could sustain the momentum, though AI has its opponents, especially from the younger generation<\/a>.<\/p>\n

\u201cEveryone sees AI and they go, \u2018I get this,\u2019\u201d he said. \u201cThere\u2019s demand for it. It\u2019s a significant shift in the marketplace for user behavior and business value that\u2019s easy to identify. The demand that we\u2019re seeing for AI and intelligence is clear, hence the buildout. The question is, can that actually be leveraged into monetization?\u201d<\/p>\n

Investors reward neoclouds but not Cisco<\/p>\n

Although neoclouds hold a more tenuous position than legacy clouds, leading companies are beating the naysayers. CoreWeave Inc. announced $2.6 billion<\/a> in quarterly revenue and Nebius Group N.V.\u2019s revenue grew to $582.3 million<\/a>, suggesting that there could be a long-term place in the marketplace for neoclouds.<\/p>\n

\u201cThe backlog on CoreWeave is a sign that there\u2019s demand,\u201d Furrier said. \u201cThat\u2019s why I focus on the utilization. Because if it doesn\u2019t come home, they\u2019re overpaid, because the prices are high on supply scarcity \u2026 but that will normalize. That will figure itself out by better computer architecture.\u201d<\/p>\n

Elsewhere in the marketplace, Cisco\u2019s achievements got a lukewarm reception. The networking company\u2019s earnings surpassed expectations, but its stock declined after hours. This is shortsighted on investors\u2019 part, according to Vellante and Furrier, who argue that Cisco is well-positioned to provide the interconnected network for AI intelligence.<\/p>\n

\u201cCisco had an awesome quarter,\u201d Vellante said. \u201cThey missed the gross margin target by a hundredth of a basis point, slim margin. They\u2019re growing the company top line by 18%. Their product revenue grew 35%. They\u2019re right in the middle of the AI mix. If we\u2019re in a bubble, Cisco should have gone up because that was a great quarter.\u201d<\/p>\n

Watch the full podcast below to find out why these industry pros were mentioned:<\/p>\n

Brian J. Baumann<\/a>, founder of NYSE Wired and director of capital markets, technology, at NYSE
Sarbjeet Johal<\/a>, founder and CEO of Stackpane
Rob Hof<\/a>, editor-in-chief at SiliconANGLE Media
Jensen Huang<\/a>, president, co-founder and CEO of Nvidia
George Steinbrenner, former principal owner and managing partner of Major League Baseball\u2019s New York Yankees
Bruno Aziza<\/a>, group VP, data, BI and AI at IBM
Jeff Bezos<\/a>, chairman of Amazon.com
Adrian Cockcroft<\/a>, tech adviser
Teresa Carlson<\/a>, former president and chief commercial officer of Flexport
George Gilbert<\/a>, principal analyst at theCUBE Research
Ali Ghodsi<\/a>, co-founder and CEO of Databricks
Chen Goldberg<\/a>, senior vice president of engineering at CoreWeave
Alex Karp, CEO of Palantir Technologies
Zedd<\/a>, DJ, record producer
DJ Snake<\/a>, DJ, French record producer<\/p>\n

Here\u2019s the full episode of this week\u2019s theCUBE Pod:<\/p>\n

You can also listen to us on Apple Podcasts<\/a> or on Spotify<\/a>. And for those who prefer to watch, check out our YouTube playlist<\/a>. Tune in now, and be part of the ongoing conversation.<\/p>\n

Photo: SiliconANGLE<\/p>\n

Support our mission to keep content open and free by engaging with theCUBE community. Join theCUBE\u2019s Alumni Trust Network, where technology leaders connect, share intelligence and create opportunities.<\/p>\n

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SiliconANGLE Media is a recognized leader in digital media innovation, uniting breakthrough technology, strategic insights and real-time audience engagement. As the parent company of SiliconANGLE<\/a>, theCUBE Network<\/a>, theCUBE Research<\/a>, CUBE365<\/a>, theCUBE AI<\/a> and theCUBE SuperStudios \u2014 with flagship locations in Silicon Valley and the New York Stock Exchange \u2014 SiliconANGLE Media operates at the intersection of media, technology and AI.<\/p>\n

Founded by tech visionaries John Furrier and Dave Vellante, SiliconANGLE Media has built a dynamic ecosystem of industry-leading digital media brands that reach 15+ million elite tech professionals. Our new proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.<\/p>\n","protected":false},"excerpt":{"rendered":"The debate over whether we are in an artificial intelligence bubble took a new turn this week. Despite…\n","protected":false},"author":2,"featured_media":142690,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[70314,70315,70316,24,2665,25,329,945,6663,4504,2330,32309,58,70317,70318,70319],"class_list":["post-142689","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ai","tag-thecube","tag-thecubepod","tag-thecubepodcast","tag-ai","tag-ai-bubble","tag-artificial-intelligence","tag-cisco","tag-coreweave","tag-dave-vellante","tag-john-furrier","tag-nebius","tag-neoclouds","tag-nvidia","tag-thecube-podcast","tag-thecube-research","tag-video-exclusive"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/142689","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=142689"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/142689\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/142690"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=142689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=142689"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=142689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}