$1.5 Trillion AI Investment Bubble Props Up US Economy as Experts Warn of Silicon Valley-Controlled Pseudo-Reality

Dec 25, 2025
the Guardian
Article image for $1.5 Trillion AI Investment Bubble Props Up US Economy as Experts Warn of Silicon Valley-Controlled Pseudo-Reality

Summary

A massive $1.5 trillion AI investment bubble artificially inflates the US economy while experts warn that hallucinating, biased AI systems risk creating a dangerous Silicon Valley-controlled pseudo-reality lacking proper regulation.

Key Points

  • AI investment totaling approximately $1.5 trillion is artificially propping up the US economy, with major tech companies betting heavily on artificial general intelligence while China pursues widespread implementation of lower-spec AI systems
  • Economic analysts are calling AI a bubble similar to previous industrial frenzies, with tech leaders like Sam Altman and Jeff Bezos acknowledging bubble-like conditions while defending their investments as necessary infrastructure
  • Current AI systems suffer from hallucinations and biased training data that produces unreliable outputs, creating risks of a synthetic pseudo-reality controlled by Silicon Valley oligarchs without proper global governance or regulation

Tags

Read Original Article