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https://www.theguardian.com/australia-news/2026/jul/27/when-the-ai-bubble-bursts-what-will-australia-do-with-the-tools-it-built-one-man-thinks-he-has-the-answer>
"When the AI bubble bursts, executives who enthusiastically replaced their
staff with AI tools will learn that it takes a “really long time” to replace
those lost skills, says Cory Doctorow, a science fiction author and journalist.
But those in creative fields should also be warned not to put all their faith
in copyright as the best way to safeguard their work, Doctorow warns, just one
week after the Australian prime minister, Anthony Albanese, promised to ramp up
protection against AI companies who refuse to pay.
In his new book, the
Reverse Centaur’s Guide to Life After AI, the man who
coined the word “enshittification” says the question isn’t “Are we in an AI
bubble?” but “When will the bubble burst?”
“The thing about bubbles is that after they burst, we look back and we say,
‘Well, obviously that was the weak link,’” he says.
The AI bubble is being kept afloat through the massive investments being made
from Gulf sovereign wealth funds and billionaires into new datacentres,
Doctorow says. If some of those deals begin to collapse, so could the bubble.
The circular investment in the AI sector – between the chip manufacturers, AI
companies and tech companies using AI – “could easily” be the first domino to
fall, he adds. Or if the AI companies including Anthropic and OpenAI continue
to delay their initial public offering and struggle to get new funding.
“We can see in retrospect, when we don’t have to continue pretending that this
thing is going to go on for ever, that it was always very, very brittle,”
Doctorow says. “It was always very fraught.”"
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
