10/6/2025
By Charles Payne, CEO & Principal Analyst

AI Debate Rages

“Bubble, Bubble toil and trouble.”

Regarding Macbeth and Shakespeare, there is a chorus that suggests the AI play cannot pay off. Some argue that the demands are too high, while others contend that use cases will never materialize to the extent needed to justify the massive investment.

They say signs are everywhere, and some are even comparing the AI bubble to the subprime bubble. Yikes!!!

The numbers don’t add up is what the critics are saying. For instance, OpenAI and others are generating $18 billion in revenue, but…

…need trillions to fulfill their promise.

A “Good” Bubble

Last week, Jeff Bezos jumped into the conversation to say the AI spending boom is a bubble, but one that will pay off. On that note, the Internet has paid off in ways doubters say it never would. For investors, at least.

The man is putting company money into his vision, and he isn’t alone.

Capex to Slow

The investments from so-called hyper-scalers will slow, but still will be substantial. 

Not the Dot.Com Boom

AI is transitioning to inference from training, which opens up immediate use cases in existing markets. 

This is just the first inning.

To read the full report, contact your account representative or email Info@wstreet.com.

Charles Payne
Wall Street Strategies

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