In 2000, Pets.com blew millions on a Super Bowl ad with a sock puppet mascot. The spot was a smash hit. The company filed for bankruptcy nine months later. Its stock, peaking at US$11, crashed to pennies.
The dot-com bubble had burst, making the puppet a symbol of the frenzy when investors dumped cash into any “.com” name, profits optional.
Twenty-five years on, Wall Street suffers intense déjà vu. This time, it’s not websites— it’s artificial intelligence. And the sums dwarf those days.
JPMorgan Asset Management reports AI spending drove two-thirds of US GDP growth in H1 2025—eclipsing contributions from millions of everyday consumers.
Let that sink in: AI investments now power America’s economy more than people buying real stuff.
When corporate wagers on unproven tech, not consumer demand, fuel growth, warning sirens blare. And they’re deafening.
What is an AI bubble—and why should you care?
A financial bubble forms when hype inflates prices far beyond reality.