An economic or financial bubble arises when speculation drives asset prices far beyond their intrinsic value, fueled by widespread optimism, herd behavior, and exaggerated expectations. As economist Charles Kindleberger described, such bubbles typically begin with genuine innovation, intensify through greed and euphoria, and ultimately collapse when reality catches up—revealing that many of the promised advancements were either unfeasible or unnecessary. The question now is unavoidable: are we in the midst of an AI bubble? The answer is yes—there is an AI bubble. Undoubtedly. While artificial intelligence represents a transformative technological leap with real potential, the current frenzy surrounding it mirrors the patterns of past speculative booms. We are witnessing a surge in investment, soaring valuations, and a flood of new startups, all driven by the belief that AI will revolutionize every industry overnight. Yet, not every company or product backed by AI is delivering measurable, sustainable value. The parallels with previous tech bubbles are hard to ignore. Critics have drawn comparisons to the dot-com boom of the early 2000s, where internet startups with little revenue or viable business models attracted massive funding. Today, we see similar dynamics: AI startups with minimal traction but flashy presentations are securing billions in capital. The cryptocurrency boom also offers a cautionary tale—where speculative fervor outpaced utility and regulation. Despite these warnings, the promise of AI remains powerful. Breakthroughs in natural language processing, computer vision, and generative models are already reshaping industries. But the danger lies in mistaking hype for progress. When the market recalibrates—when investors demand real returns and consumers question the value of AI-powered products—many ventures will fail. History teaches us that bubbles, while painful, can also be catalysts for long-term innovation. When the hype fades, only the most resilient and truly useful technologies survive. Natural selection will take over: companies with solid products, sustainable models, and real impact will endure. Others—built on overpromises and inflated expectations—will vanish. The AI bubble is not a sign of failure, but of momentum. The real test isn’t whether AI will change the world, but whether we can build it responsibly, sustainably, and with a clear focus on value. The burst may be painful, but it will clear the way for a more grounded, meaningful era of artificial intelligence.