The AI Bubble: A Deeper Dive

Dec 03, 2025

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Model Analysis: The AI Bubble (Overshoot & Collapse)

1. Model Explanation

This model depicts a classic “Overshoot and Collapse” scenario driven by a significant delay between Investment (Action) and Validation (Feedback).

The Engine (R1 - The Capex Spiral): The system is currently dominated by a positive feedback loop where high Market Capitalization justi…

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