“If you're looking for a sign companies back down and go: 'Got you, it's a bubble!' They're never going to do that. They'll keep pretending everything's fine until the last death throes.”

Mike and Nick describe the AI bubble not as a single failure, but as a stack of overlapping collapses. From the physical reality of energy constraints in the Strait of Hormuz to the shadow banking fueling data centers, they map out how the bubble isn't just an economic issue but increasingly a political one, too.

• Overlapping bubbles: The economy is experiencing 5 bubbles, with at least 4 of them concentrating around AI spending.
• The energy ceiling: Silicon Valley ignores the material world at its own peril. Between energy costs and supply chain chokepoints like the Strait of Hormuz, “scale is all you nee ...