This year, American tech companies will spend $300 billion to $400 billion on artificial intelligence, which is in nominal dollars more than any group of companies have ever spent to do anything. Notably, these companies are not remotely close to earning $400 billion on artificial intelligence. That's why you’re starting to hear some people wonder if the AI build-out is turning into the mother of all economic bubbles. The prospect of an AI bubble should scare us. Roughly half of last quarter's GDP growth came from infrastructure spending on AI, and more than half of stock market appreciation in the last few years has come from companies associated with AI. If the AI spending project blows up in the next few years, as our next guest says it might, the implications for technology, the economy, and politics would be immense. Paul Kedrosky is an investor and writer. Today we talk about the AI capex boom: how it works, who’s financing it, how its financing works. We put the AI build-out in historical context. And then we spend a great deal of time walking through what could go wrong and when it might go wrong. If you have questions, observations, or ideas for future episodes, email us at PlainEnglish@Spotify.com. Host: Derek Thompson Guest: Paul Kedrosky Producer: Devon Baroldi Learn more about your ad choices. Visit podcastchoices.com/adchoices