The Four Essentials for a Technology Bubble
Discussions surrounding an AI bubble have surged recently, with major tech firms such as Google, Meta, and Microsoft significantly increasing their AI investments for 2026. But how have analysts effectively pinpointed the emergence of tech bubbles in the past? Hosts Michael Calore and Lauren Goode engage with Brian Merchant, a WIRED contributor and author of the newsletter Blood in the Machine, to unpack the four criteria that some researchers have previously utilized to comprehend and prepare for potential challenges.
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You can find Michael Calore on Bluesky at @snackfight and Lauren Goode on Bluesky at @laurengoode. Contact us at uncannyvalley@wired.com.
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Transcript
Note: This is an automated transcript and may contain inaccuracies.
Michael Calore: Hey Lauren, how’s it going?
Lauren Goode: I’m good, Mike. It’s earnings season, so many of us on the business desk at WIRED have been following tech companies’ earnings reports and calls. Essentially, it’s CapEx season.
Michael Calore: CapEx?
Lauren Goode: Capital expenditures.
Michael Calore: You actually say CapEx?
Lauren Goode: Yep. Now that I’m on the business desk, it’s CapEx for me.
Michael Calore: You’ve joined the club.
Lauren Goode: I toss it around at gatherings. Just kidding! We are witnessing a trend where tech companies are sitting on large sums of money, and they aren’t merely keeping it idle. They are announcing substantial plans to invest in it, particularly on AI infrastructure.
Michael Calore: Exactly. Data centers.
Lauren Goode: Yes, more data centers. Although it’s not just data centers, but that’s certainly a major component.
Rajat Sharma
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