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# AI's Capital Bubble Could Be the Next Crash
- URL: https://adjacent.media/signals/ais-capital-bubble-could-be-the-next-crash/
- Published: 2026-07-17T23:08:45.000Z
- Updated: 2026-07-17T23:08:45.000Z
- Description: The AI industry is absorbing more total capital than the Manhattan Project, Interstate Highway System, and Apollo program combined—a concentration of speculative spending on unproven business models with no historical precedent.
- Author: Jonathan Greene
- Tags: #signal, theme-ai, ai capability claims, ai funding and investment, ai infrastructure costs

Source: [Persuasion](https://open.substack.com/pub/persuasion1/p/an-ai-crash-is-a-real-possibility)

The AI industry is absorbing more total capital than the Manhattan Project, Interstate Highway System, and Apollo program combined—a concentration of speculative spending on unproven business models with no historical precedent. When the gap between infrastructure investment and actual revenue-generating applications widens past a breaking point, venture funds face losses, and funding for marginal AI companies and AGI bets dries up. The risk is that capital markets' tolerance for losses evaporates faster than startups can demonstrate ROI.