"Something Wicked This Way Comes" — Why The AI Bubble Isn't What You Think
Tom Bilyeu compares the AI investment boom to historical infrastructure bubbles like railways and fiber optic cables, warning that timing mismatches and GPU depreciation put retail investors at serious risk.
The gist
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First-wave investors in transformative technologies routinely go broke; the real money historically goes to those who buy distressed assets after the crash.
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GPUs depreciate in about 3 years versus decades for railroads, meaning AI companies face constant replacement costs that squeeze the profit window.
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Bilyeu says banks are slicing data center debt into securitizations sold to pension funds while insiders plan to exit through a coming wave of AI IPOs targeting retail buyers.
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If you invest in AI, Bilyeu recommends spreading exposure across the sector, avoiding debt, and holding for 20 or more years to survive a potential crash.
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