Investors are questioning if AI is in a bubble, with signs pointing to a possible burst. Prominent figures like Peter Thiel and SoftBank are selling shares, while Michael Burry warns of a bubble. The CEO of BlueOrigin predicts data centers in space. Utilities are wary of AI power demand and risks.

Electric utilities demand long-term contracts for AI centers, suspecting phantom data centers. Changes in technology, like Chinese AI developments and quantum computing, pose challenges. Jeff Bezos’ prediction of data centers in space raises questions. If investors pull back, the bubble could burst, affecting utilities and customers.

The influx of equity capital and overbuilding of data centers raise concerns. Underutilized data centers and shifting risks to utilities add to uncertainties. Rising prices and potential political backlash loom. If investors withdraw, the bubble may burst, reducing risks for utilities but impacting the industry. AI poses risks without clear benefits for utilities and customers.

Read more at Yahoo Finance: The AI Power Surge Could End Badly