Is there really no AI bubble?

Not in the classic sense—data centers are too critical for state power plays to let them fail.

Why are investors funding unprofitable AI data centers?

Short-term losses, long-term government contracts. It's not about consumers.

By processing all comms data, enforcing self-policing via ubiquitous smart devices.

Billions pour into AI data centers that lose money hand over fist. But don't call it a bubble—call it the next surveillance empire.

theAIcatchup Apr 08, 2026 3 min read

AI data centers defy bubble logic due to government bailouts for surveillance. 𝕏
Dotcom parallels exist, but path dependence locks in the infrastructure. 𝕏
Consumer AI flops; state control thrives—watch for subsidies by 2027. 𝕏

Published by

Where law meets technology.

#AI bubble #AI investments #data centers #surveillance state

Get the best Legal Tech stories of the week in your inbox — no noise, no spam.

Originally reported by Algorithm Watch